On Jan 1, 2021, ABC Company acquired a machinery at a cost of P250,000. It was estimated to have a useful life of 10 years and no residual value. The company uses the cost model to account for the...

On Jan 1, 2021, ABC Company acquired a machinery at a cost of P250,000. It was estimated to have a useful life of 10 years and no residual value. The company uses the cost model to account for the machinery and the straight-line method is used in depreciating the machinery. On Dec 31, 2022, the company tested the machinery for possible impairment and determined that the recoverable value of the said machinery amounted to P150,000. On Dec 31, 2023, it was revealed that the recoverable value of the machinery had increased to P187,500. Q-29.

8.How much is the impairment loss reported in 2022?

9.What is the carrying amount of the machinery on Dec 31, 2023 before reversal of impairment?

10.What is the carrying amount of the machinery on Dec 31, 2023 on the basis that it was not impaired?

11.What amount of gain on reversal of impairment should be reported in profit or loss for 2023?