Problem 17: Kankanaey Company determined that due to obsolescence, equipment carried at cost acquired 3 years ago with original cost of P 5,400,000 with residual value of P400,000 and accumulated...

Extracted text: Problem 17: Kankanaey Company determined that due to obsolescence, equipment carried at cost acquired 3 years ago with original cost of P 5,400,000 with residual value of P400,000 and accumulated depreciation using a straight-line method of depreciation at January 1, 2019 of P1, 500,000 has suffered permanent impairment and as a result should have a recoverable value of only P 2,500,000 as of the end of the year. In addition, the remaining useful life of the equipment was reduced to 4 years with no residual value. On January 1, 2021, it isalearly determinable that the recoverable amount of the equipment is P2,000,000. 52. How much impairment loss would be recognized in 2019? 53. How much gain on reversal of impairment should be recognized on January 1, 2021? 54. How much depreciation will be recognized in 2020?