ABC 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 factory’s fair value is P1,000,000. The impairment loss allocated to Machinery and Equipment is? (do not round off the percentage, round off your final answer to the nearest peso)
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8. ABC 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 factory’s fair value is P1,000,000. The impairment loss allocated to Machinery and Equipment is? (do not round off the percentage, round off your final answer to the nearest peso)
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- ABC 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)12. ABC has determined that one of its cash generating units (CGU) is impaired. The assets of the CGU at their book value are: Goodwill – 250,000; Land – 4,000,000; Factory – 1,200,000; Machinery and Equipment – 1,800,000. The value in use of the cash generating unit is P6,000,000. The impairment loss allocated to factory account assuming the impairment loss specific to machinery and equipment is 300,000 is? (do not round off the percentage, round off your final answer to the nearest peso)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 P87,500
- Impairment is defined as a reduction in the value of a company asset, whether fixed or intangible which decline the asset's quality, quantity, or market value. (a) The carrying amount of a machinery is RM525,000. This consists of goodwill of RM75,000, development costs of RM150,000 and machinery of RM300,000. The machinery has a recoverable amount of RM330,000. Calculate the carrying amount of the machinery after the impairment loss has been allocated.Impairment is defined as a reduction in the value of a company asset, whether fixed or intangible which decline the asset's quality, quantity, or market value. (a) The carrying amount of a machinery is RM525,000. This consists of goodwill of RM75,000, development costs of RM150,000 and machinery of RM300,000. The machinery has a recoverable amount of RM330,000. Calculate the carrying amount of the machinery after the impairment loss has been allocated. (b) Syarikat Alfa has a year-end of 31 December and operates a factory which makes computer chips for mobile phones. It purchased a machine on 1 July 2016 for RM80,000 which had a useful life of ten years and is depreciated on a straight-line basis, time apportioned in the years of acquisition and disposal. The machine was revalued to RM81,000 on 1 July 2017. There was no change to its useful life at that date. A fire at the factory on 1 October 2019…3. The company had the following transactions or events during the year: The company paid $100,000 to exchange an old equipment for a new equipment.The cost and accumulated depreciation of the old equipment were $500,000 and $260,000, respectively. The fair value of the old equipment was $300,000, while the fair value of the new equipment was $450,000. This exchange had commercial substance. The old machinery with the original cost of $5,000 and accumulated depreciation of $4,800 was exchanged for a new machinery.The company paid $6,000 for the new machinery. This exchange did not have commercial substance. The company purchased an equipment on September 1.The equipment will be dismantled, and the estimated site restoration costs of $50,000 will be incurred after 15 years. The current discount rate is 6%. The company recorded accrued interest on this asset retirement liability on December 31. (P/F,6%,15) =0.41727, i.e., the present value of $1 at the discount rate of 6% for 15…
- In 2009, Cilla Company acquired production machinery at a cost of $420,000, which now has accumulated depreciation of $230,000. The sum of undiscounted future cash flows from use of the machinery is $150,000 and its fair value is $164,000. What amount should Cilla recognize as a loss on impairment? Group of answer choices $0 $66,000 $40,000 $26,0005BE11-8 Jurassic Company owns equipment that cost $900,000 and has accumulated depreciation of $380,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair value of the equipment is $400,000. Prepare the journal entry, if any, to record the impairment loss.7. In 20X4, ABC Mining Inc. purchased land for P5,600,000 that had a natural resource supply estimated at 4,000,000 tons. When the natural resources are removed, the land has an estimated value of P640,000. The required restoration cost for the property is estimated to be P800,000. Development and road construction costs on the land were P560,000, and a building was constructed at a cost of P88,000 with an estimated P8,000 salvage value when all the natural resources have been extracted. During 20X5, additional development costs of P272,000 were incurred, but additional resources were not discovered. Production for 20X4 and 20X5 was 700,000 tons and 900,000 tons, respectively. Round depletion charge to the nearest cent. On 20X4, depletion charge is?
- Corning Industries owns a patent for which it paid $77,000. At the end of the current year, accumulated amortization on the patent totaled $14,000. Due to adverse economic conditions, Corning’s management determined that it should assess whether an impairment loss should be recognized for the patent. The estimated undiscounted future cash flows to be provided by the patent total $45,000, and the patent's fair value is $30,000. (a) What is the amount of the impairment loss, if any, on the patent at the end of the current year? (b) What is the book value of the patent after any impairment loss is recorded?In 2015, Bambung Corporation acquired production machinery at a cost of £416,000, which now has a book value of £195,000. The discounted future cash flows from use of the machinery is £175,000 and its fair value less costs to sell is £159,000. What amount should Bambung recognize as a loss on impairment under IFRS? Group of answer choices £16,000 £36,000 -0- £20,000TRUE OR FALSE?There is impairment loss if the carrying amount of the asset held for sale is P5,000,000 and the fair value less cost of disposal is P5,200,000.