Reference no: EM133032856

Question - One of the cash generating units of Carmen Corporation is that associated with the manufacture of wine barrels. At 31 December 2009, Carmen Corporation believed, based on an analysis of economic indicators, that the assets of the unit were impaired. The carrying amounts of the assets of the unit at 31 December 2009 were:

Buildings P420,000

Accum. Dep-Buildings (depreciated at P60,000 per annum) (180,000)

Factory machinery 220,000

Accum. Dep-Machinery (depreciated at P45,000 per annum) (40,000)

Goodwill 15,0000

Inventory 80,000

Receivables 40,000

Allowance for doubtful debts (5,000)

Cash 20,000

Carmen corporation determined the value in use of the unit to be P535,000. The receivables were considered to be collectible, except those considered doubtful.

During 2010, Carmen corporation increased the depreciation charge on buildings to P65,000 per annum, and to P50,000 per annum for factory machinery. The inventory on hand at December 31, 2009, was sold by the end of 2010. At December 2010, Carmen Corporation, due to a return in the market to the use of traditional barrels for wines and an increase in wine production, assessed the recoverable amount of the cash generating to be P20,000 greater than the carrying amount of the unit.

How much is the carrying amount of buildings at 31 December 2009 after allocating impairment loss?

How much is the carrying amount of factory machinery at 31 December 2009 after allocating impairment loss?

How much is the carrying amount of buildings at 31 December 2010 after the reversal of impairment loss?

How much is the carrying amount of factory machinery at 31 December 2010 after the reversal of impairment loss?