5. An independent appraiser provides the following information on the value of a High Pressure Water Turbine owned by XYZ Corp: Fair Value: $ 20,000,000 Costs to Sell Turbine: $500,000 Value in use: $19,000,000 Net Carrying Amount: $19,000,000 If the company reports under IFRS standards, what will be the amount of impairment loss that XYZ will need to record on its income statement related to the turbine?
Q: According to its 2019 Income Statement, The Legendary Corporation had the following operating…
A: cash flow from assets (CFFA) = operating cash flow (OCF) - change in net working capital (change in…
Q: Journalize the following merchandise transactions: (If an amount box does not require an entry,…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Comprehensive Problem (Algo) LO 12-1, 12-2, 12-3, 12-4 During Year 3, Anywhere, Inc. (Al) incurred…
A: EQUIVALENT UNITS PRODUCTION Equivalent units Production of a Process in term of Completed Units.…
Q: moose inc acquired 100 900 par value 6% year bonds on their date of moose purchas them at a 101%…
A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…
Q: Gems Inc. has the following account balances (in thousands): Buildings Accum. dep-buildings…
A: Working capital refers to the money that is available for meeting the short-term, current assets…
Q: en as 2. An office Equipment was acquired on May 01, 2016 for P 45,000. estimated of five years with…
A: DEPRECIATION EXPENSES Depreciation Expenses is the monetary value of an asset decreases over…
Q: 41) Dozen Corporation is owned equally by twelve unrelated individuals. Its taxable income this year…
A: The accumulated earnings tax is a 20% penalty that is imposed when a corporation retains earnings…
Q: Show the effects of all the above transactions on Moon’s Balance Sheet as of 12/31/2022 and Income…
A: There are transactions over which the company’s financial statements are effected which is the…
Q: Ultimo Company operates three production departments as profit centers. The following information is…
A: The departmetal contribution to overhead is the amount contributed by the department to overhead…
Q: Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments,…
A: Solution.. Total labor hours = Labor hours of blinks + labor hours of Dinks = Units produced *…
Q: Required information [The following information applies to the questions displayed below] On January…
A: Introduction:- Assets: Assets are resources (property) presented in the balance sheet because for it…
Q: TRUE OR FALSE 1. The "Matching Principle of accounding requires companies to disclose all…
A: Accounting is the process of measuring, processing, and sharing financial and other information…
Q: Ravenmadde is a retail seller of Hats. They have the following Trial Balance at December 31st.…
A: Financial statements are those which are prepared by the entity for the purpose of depicting the…
Q: Net income - P200,000; Depreciation expense - P40,000; Dividends declared - P70,000; Dividends paid…
A: The calculation of cash flow involve a cash inflows out flow operating activities are deactivitis…
Q: A bond issue had the following details: $1.00
A: Bond represents the loan taken by the company on which a specific percentage of interest has to be…
Q: Which of the following is a condition a taxpayer must meet to claim injuries spouse? The spouse: A.…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: Date Transaction May 2 The company borrowed $43,750 cash by signing a note payable to USA Bank May 5…
A: The journal entries are prepared to record the transactions of business on regular basis. The…
Q: January 31 of the current year, Marcy contributed the following to a partnership for a 30% interest:…
A: Partnership is the form of the business where the two persons come together in order to share their…
Q: Raw Materials Inventory, June 1 Purchases Total Raw Materials Available for Use Less: Raw Materials…
A: Cost of goods sold - Cost of Goods Sold is the cost incurred to sell the goods to the customer. The…
Q: Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December…
A: The uncollectible accounts are the accounts receivables balance which are estimated to be…
Q: A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts,…
A: The correct answer is: (B) The lender will take title subject to any junior Liens. A deed in lieu of…
Q: Chessca applied for a loan amounting to 1,275,000 in la bank and the interest of which is 166,500…
A: Hi student Since there are multiple questions, we will answer only first question. Interest is the…
Q: what are the possible causes of adverse Wage rate varianc
A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…
Q: 28. On January 1, 2027, a contractor started a construction project for $1,350,000; estimated…
A: Construction costing is the process of accounting followed by businesses engaged in construction. It…
Q: On January 1, 2022, Sunland Company had the following stockholders' equity accounts. Common Stock…
A: Journal Entries are the primary step to record the transaction in the books of accounts. The entries…
Q: The board of directors of Mesa Verde Tool Company set the profit goal for calendar year 2016 at…
A: Absorption costing is a costing mechanism where all the costs related to the production are assigned…
Q: At the end of the current year, Accounts Receivable has a balance of $5,125,000; Allowance for…
A: Allowance for doubtful accounts is the amount which is expected by the company to be uncollectible…
Q: PROBLEM 4- Betty, Inc., incurs the following costs to produce and sell a single product. Variable…
A: The variable costing income statement is used for internal reporting purposes. The absorption…
Q: Exercise 4-6 (Algo) Completing the income statement columns and preparing closing entrie P1, P2…
A: Net income is the difference between total revenues and total expenses. It indicates the value of…
Q: Waterway Company is trying to determine the equivalent units of production for conversion costs with…
A: Conversion costs are costs related to direct labor and manufacturing overhead to convert the raw…
Q: On December 31, 2024, Sunland Company had 1,360,000 share 2024, stockholders' equity had the amounts…
A: Journal entry represents the initial recording the financial transactions of the company. It…
Q: 6 Which of the following is not a benefit of decentralization? A. Trains future managers. B.…
A: Decentralisation means that the decision making process is not done by senior managers and lower…
Q: 2) Jon started a new job and wants to verify her net pay has been computed correctly. Her gross pay…
A: Tax liability is the payment owed by an individual, business, or other entity to a federal, state,…
Q: e following data relate to direct labor costs for the current period of Executive Inc.: Standard…
A: Answer : Direct labor time variance = (Actual hour* Standard rate) - (Standard hour* Standard rate)…
Q: Use the following information to answer the next 2 question Standard machine hours per unit of…
A: Cost Variance - A cost variance is a difference between the cost that was actually incurred and the…
Q: 14. Harris Company has an old asset that originally cost $115,000 (accumulated amortization,…
A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: Assume that Management had determined that its organization’s audit committee is not effective. How…
A: Note:- “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: Coles is a non-financial company operating a supermarket chain in Australia. During the week under…
A: Balance sheet shows the financial position of the company that includes the assets, liabilities, and…
Q: Sheffield Company is preparing its direct labor budget for 2022 from the following production budget…
A: The direct labor budget is prepared to record the direct labor cost to be incurred during the…
Q: Real estate tax is levied for the calendar year from Jan 1 to Dec 31 and is payable in the following…
A: Governments levy taxes as obligatory charges on persons or goods in essentially every country on the…
Q: Cey Company has a defined benefit pension plan. Cey's policy is to fund net periodic pension cost…
A: Introduction:- A liability is a legal obligation to pay other entities as a result of past…
Q: < The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of…
A: The variance is the difference between the actual data and standard output of the production. The…
Q: opening inventory 2400 units opening inventory 3300 units closing inventory 500 units closing…
A: A sales budget is a financial strategy that projects the entire income of a business over a given…
Q: change in the method of determining the items to be treated as cash equivalents in the statement of…
A: Cash and cash equivalent represents the most liquid asset for the company. The cash and cash…
Q: Bramble Corp. estimates its sales at 280000 units in the first quarter and that sales will increase…
A: Sales Budget :— This budget is prepared to estimate the number of budgeted units sold during the…
Q: Calculate the amount of interest if $2000 is invested at 6% for 200 days
A: The periodic receiving of inflows onto financial instruments such as bonds, government securities,…
Q: Tyrell Company entered into the following transactions involving short-term liabilities. Year 1…
A: If the note has not yet been converted into equity, the maturity date of the note specifies the date…
Q: Hide student question Issue #11: Comparison of Returns on $200000 and 5.5% on$70,000 Investors,…
A: HISTORICAL RETURN EXPECTATION IS SIMILAR TO OR EQUAL TO 9% P.A. SAFEST INVETSMENT OPTION 5.5% on…
Q: EX 3-6 Determining wages paid 0811 The wages payable and wages expense accounts at May 31, after…
A: Wages Paid :— It is the amount of wages payable that are paid during the period. Wages Paid =…
Q: Technical Analysis attempts to O focuses on the Technology sector and predicts if the sector is…
A: 1. Technical analysis seeks to predict price movements by examining historical data, mainly price…
Ma3.
Please give only typed answer.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- * Your answer is incorrect. Bramble Company owns equipment that cost $1,026,000 and has accumulated depreciation of $433,200. The expected future net cash flows from the use of the asset are expected to be $620,000. The fair value of the equipment is $456,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Accumulated Depreciation - Equipment Loss on Impairment eTextbook and Media List of Accounts Debit 592800 0 Credit 0 592800Burgundy Limited purchased a plant on 2 January 20X1 for C80 000. The plant is measured under the revaluation model, using the net replacement value method, and is depreciated on the straight-line basis, over its estimated economic useful life of 5 years, to a nil residual value. The following fair values were measured by an independent valuer using the cost approach (often called the current replacement cost): Date Fair value 01 January 20X2 C96 000 01 January 20X3 C40 000 01 January 20X4 C40 000 Burgundy transfers a portion of the revaluation surplus to retained earnings on an annual basis. There were no indications of impairment at the end of any of the years. Required: Show all related journal entries for the years ended 31 December 20X2, 20X3 and 20X4. Ignore tax.A non-current asset has a carrying amount of GHS 20,000. It could be sold for GHS 18,500 with selling costs of GHS 500. Its value in use is GHS 22,000 and its replacement cost GHS 50,000. According to IAS 36 Impairment of Assets, what is the recoverable amount of this asset?
- Staton Corporation's balance sheet includes Equipment recorded at a cost of $110,000 and accumulated depreciation of 20,000. After performing its annual review for impairment, Staton determined the following: Asset value in use $69,000 Fair value less selling costs 67,000 Undiscounted cash flows... 89,000 a Assuming Staton uses the rational entity impairment model record the appropriate entries. b Assuming Staton uses the cost recovery model calculate the impairment if any.Shamrock Inc. owns equipment that cost $605,000 and has accumulated depreciation of $157,000. The expected future net cash flows from the use of the asset are expected to be $400,000. The fair value of the equipment is $346,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit CreditNovak Corp., a small company that follows ASPE, owns machinery that cost $925,000 and has accumulated depreciation of $385,000. The undiscounted future net cash flows from the use of the asset are expected to be $513,000. The equipment's fair value is $440,000. Using the cost recovery impairment model, prepare the journal entry, if any, to record the impairment loss. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
- Factor Company’s cash generating unit has been assessed for impairment and it has been determined that the unit has incurred an impairment loss of P240,000. The carrying amounts of the assets were as follows: Building P6,000,000; Land P3,500,000; Equipment P2,000,000; Vehicles P2,500,000. The cash generating unit has not recorded goodwill. If the fair value less cost to sell of the building is P5,960,000, what amount of impairment should be allocated to the equipment? * P34,286 P50,000 P62,500 P87,500On December 31, 2022, Belt Enterprises must measure its impairment loss for plant and equipment. Belt has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: EEE (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or parentheses for any loss amounts.) Plant and Equipment Less: Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then credits. Exclude explanations from any jo December 31, 2022 Account Determine the revised annual depreciation expense. The annual depreciation expense is Data table Cost Less: Accumulated Depreciation/Amortization Carrying value…Sage Hill Inc. owns equipment that cost $594,000 and has accumulated depreciation of $154,000. The expected future net cash flows from the use of the asset are expected to be $392,000. The fair value of the equipment is $339,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
- On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment. Delater has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or par Plant and Equipment Carrying value Less: Fair value Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then c December 31, 2022 2,145,000 915,000 $ (2,145,000) 1,230,000 $ (915,000) Account Accumulated Depreciation Plant and Equipment Impairment Loss on Plant and Equipment Plant and Equipment Determine the revised annual depreciation…Muskoko Inc. purchased a property for $1.800,000 in 2022. The carrying value of property was $1,500,000 when it was required to be tested for impairment at December 31, 2026. The fair value at December 31, 2026 is $1,250,000 and the present value of future cash flows from the production facility was calculated as S1.056.000 at December 31, 2026. What is the total impairment of the production facility. if any? Answers A-E A impairment gain of $ 5S0.000 B Impairment loss of $ 250.000 No impairment gain or loss D Impairmenit gain of $300.000 E mpairment loss of $ 444,000ABC has determined that one of its cash generating units (CGU) is impaired. The assets of the CGU at their book value are: Land – 4,000,000; Factory – 1,200,000; Machinery and Equipment – 1,800,000. The value in use of the cash generating unit is P5,500,000. The impairment loss allocated to Machinery and Equipment is? (do not round off the percentage, round off your final answer to the nearest peso)