An asset group is being evaluated for an impairment loss. The following financial information is available for the asset group: Carrying Value=100,000,000 Sum of the undiscounted cash flows= 95,000,000 Fair value= 80,000,000 Carrying Value $100,000,000
Q: avoidable and unavoidable cost?
A: Costs are the amount incurred for the different purposes of the business. It is defined in monetary…
Q: Methods that ignore the time value of money in capital investment appraisal include which of the…
A: Net present value – Net present value is the difference between present value of cash inflows of…
Q: A company is planning to purchase a machine that will cost $42,000 with a six-year life and no…
A: Payback Period The acceptability of a project is determined by a variety of factors, one of which is…
Q: The Torre Company has the following stockholders' equity account balances in stockholders equity on…
A: calculation of common stock outstanding are as follows
Q: The following statement about overhead absorption rates (OARs) is true. The OAR will: O a change…
A: Overhead absorption rate is predetermined overhead rate. It is calculated by using estimated data of…
Q: Prepare a predistribution plan to determine the amount for which the partnership must sell the other…
A: SOLUTION
Q: On January 1, 2015 P company acquired 80% interest in S Company for P2,000,000 cash. The…
A: calculation of value of goodwill are as follows
Q: Highridge Homes
A:
Q: Siegel Company spent $14,000 on direct supplies and $19,000 on compensation for manufacturing…
A: The income earned by an entity after deducting all expense whether manufacturing or selling from the…
Q: Using the income tax withholding table in Figure 3, for each employee of Miller Company, determine…
A: Payroll It is important for the business entity to prepare the payroll process and its statutory…
Q: William sold Section 1245 property for $28,000 in 2021. The property cost $41,000 when it was…
A: Given that, Sales value of property = $28,000 Cost of property = $41,000 Depreciation claimed =…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: calculation of above requirements re as follows
Q: Required information [The following information applies to the questions displayed below.] Following…
A: Introduction: The total value of all products sold by a company at a specific period is referred to…
Q: Based on the information above, discuss the ways in which fraud/ theft could be perpetrated at…
A: A fraud could be made by the employees of the company whenever there is a loophole in the system in…
Q: Target Ltd manufactures dart boards and its budget for its first month of trading showed the…
A: Lets understand the basics. Generally two costing system are followed by the entity which are, (1)…
Q: Unearned Delivery Fees of FDNACCT Co. before adjustments amounted to P80,000. % of the unearned…
A: Unearned sales Revenue: Unearned sales Revenue means money received from the customer in advance for…
Q: The following year-end information is taken from the December 31 adjusted trial balance an Company.…
A: Total manufacturing costs = Direct materials used + direct labor cost + Factory overhead cost Cost…
Q: Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales…
A: Introduction: Accounting journal entries are used for physical payment transactions in the…
Q: Select the best answer for the question. Here's a partial trial balance taken from the records of…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: b. Classification of costs may be based on the information needs of management and their nature.…
A: Cost- Cost states all types of cost related to manufacturing of goods, operations of business, etc.…
Q: Timothy (40) and Tina (42) are California residents. Todd (age 10) and Ted (age 7) are their two…
A: Tax Break for Children: As per 2020 Child Tax Credit, an individual can get a tax credit of $2,000…
Q: please answet the following question thanks
A: Minimum transfer price is the amount which is paid to one division by the other after purchasing the…
Q: estion 11 Find the monthly house payment necessary to amortize the following loan. In order to…
A: Time value of money is the concept that is widely used by individuals and companies to determine the…
Q: a) What are the tax consequences to the trust and the grantor of the retained power to distribute…
A: Answer (A) : A "grantor trust" is one in which the grantor (or another person) maintains control…
Q: Daly Publishing Corporation recently purchased a truck for $43,000. Under MACRS, the first year's…
A: calculation of above requirement are as follows
Q: The data given below relate to Frempomaa Ltd. for the year ended 31/12/2000: Fixed factory overhead…
A: The income statement is prepared to record the revenue and expenses for the current period. The…
Q: a Compute Work in Process Inventory at April 30. (if an input held is not used in the table, leave…
A: Finished inventory on a particular date is the inventory which has been available and ready to be…
Q: McDonald’s Corporation (MCD) reported the following balance sheet and income statement data for two…
A: Assets turnover ratio = Net Sales/ Average Total Assets
Q: Describe the difference between prime costs and conversion costs?
A: Introduction: Conversion costs are charges spent when raw materials are turned into a product,…
Q: Under the current tax treatment of employer-sponsored health insurance, how much is $100 of…
A: Health Insurance It is a type of insurance that covers the whole or a part of the risk of a…
Q: A project is rejected under the net present value method when: a. The percentage return is greater…
A: The correct option with proper explanation are as follows:
Q: Pearl City Jewelry produced 1,530 rings during March. The standard cost of each ounce of gold used…
A: Material price variance is the difference between the standard price and the actual price paid for…
Q: When an investor owns less than 20 percent of the investee company, the investor may still be able…
A: Introduction:- Significant influence means company or investor holds 20% or more of the voting…
Q: Holly, Incorporated has a building that originally cost $425,000. Holly expects to be able to sell…
A: The residual value is the resale value of the asset after its useful life of assets. It is also…
Q: d sells and delivers goods to XXX Ltd on 13 March. Both parties agree that XXX Ltd will hold the…
A: Consignment : It is the process of sending goods by one person to another to be sold by the latter…
Q: Find the effective rate of interest per? a. Compounded Daily (360 Days) b. Compounded Daily (365…
A: It is given in the question that the interest rate is 24% per annum, now the question is that this…
Q: ABC Ltd. Incurred the following costs related to the purchase of a machine: Invoice price Insurance…
A: The costs that are incurred to acquire the assets and further to install the assets, and other cost…
Q: Employee net pay Lindsey Vater's weekly gross earnings for the week ended March 9 were $1,200, and…
A: Net pay refers to an employee's wages after all withholdings have been made. Mandatory deductions…
Q: Standard Cost Journal Entries Bellingham Company produced 5,300 units that require five standard…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: A 180-day promissory note was issued by FDNACCT Co. on November 1, 2021 in exchange of goods bought…
A: Interest receivable=Face value of the note×Interest rate×Term of the note
Q: Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2, (2) an ordinary annuity of…
A: Cash Flow: Cash flow refers to the amount of cash or cash equivalents that a firm earns or spends as…
Q: A Toyota Crown motor car was purchased for $2,750,000 (the exchange rate was $100 JMD to one United…
A: Answer d. $1,031,250
Q: rall Company recently had a computer malfunction and lost a portion of its accounting records. The…
A: calculation of above requirement are as follows
Q: Tral Balance of Leisure Hotels as at June 30 Issued 7% preference share capital SI each Issued…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: A 180-day promissory note was issued by FDNACCT Co. on November 1, 2021 in exchange of goods bought…
A: Interest income is the amount of money received as an interest either from an investment, bonds, or…
Q: Upon January 1, 2020, Sally Corp. borrowed $360,000 from County Bank and signed a 15-year note…
A: It is simply a fee levied against the borrower for the use of an asset. Borrowed assets might…
Q: Maxim manufactures a hamster food product called Green Health. Maxim currently has 18,500 bags of…
A: calculation of incremental income
Q: Required information [The following information applies to the questions displayed below] Doyle…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Taxpayer, age 63 and si
A: Tax is a liability of every citizen that is to be paid to the government of the country. Tax is the…
Q: acturor a hamster food product called Green Health Maxim currently has 23.000 bags o
A: In this problem as per given info Maxim has currently 25,000 bags in…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Estimate the average total estimated useful life of depreciable property, plant, and equipment. Starbucks reports 580.6 million of depreciation and amortization in the statement of cash flows, of which 4.5 million relates to amortization of limited-life intangible assets. Does the estimate reconcile with stated accounting policy on useful lives for property, plant, and equipment? Explain.The company provided the data of PP&E in a cash-generating unit (CGU) as follows: Cost Accumulated Depreciation Equipment A $ 15,000 $ 8,000 Equipment B 30,000 19,000 Equipment C 45,000 23,000 The unit’s fair value less costs to sell was $25,000. The unit’s future cash flows was $32,000, and its present value was $28,000. The company adopted IFRS. Prepare journal entries to record impairment. If the recoverable amount of Equipment C is $19,000, prepare journal entries to record impairment. If the recoverable amount of Equipment C is $24,000, prepare journal entries to record impairment.the equipment had a fair value of $4,500,000. The equipment originally cost Brody $4,680,000, had accumulated depreciation of $468,000, and had expected future net cash flows of $3,120,000. REQUIRED: What is the impairment journal entry for this asset
- 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)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…
- ABC is testing a store branch for impairment. The assets of thebranch include a building with a carrying amount of P4,000,000,equipment of P3,000,000, inventory of P2,000,000 and goodwill ofP500,000. The fair value less cost to dispose of the inventory is P2,500,000.The expected cashflows from the branch are: Year Amount1 P 2,000,0002 1,700,0003 1,500,0004 1,500,0005 1,300,000 The effective interest rate is 9%. The present value of the cashflowsbeyond year 5 is estimated to be at P400,000. 10. Value in use of the store branch11. Total Impairment Loss12. Carrying value of the building after impairment13. Carrying value of the inventory after impairment14. Carrying value of the goodwill after impairmentDiva Ltd has an item of equipment with a carrying amount of $110000 (cost $150000 less accumulated depreciation $40000). the following data has been obtained by Diva in relation to the asset; estimated fair value of the asset less costs of disposal - $90,000 present value of future cash flows expected to be derived from the asset $70000 To account for the impairment loss, the accountant for Diva is considering a number of accounting entries. In accordance with IAS 16 Property, Plant and Equipment and IAS 36 impairment of assets, which one of the following entries is made to recognise the impairment loss?Sylvia Company has a long-term plant asset with the following information as of the end of the year: Net book value $87,200 Estimated future cash flows $68,000 Fair Value $60,000 The amount of the impairment loss is: A. $155,200 B. $19,200 C. $8,000 D. $27,200
- Harlem, Inc., was reviewing its assets for impairment at the end of the current year.Information about one of its assets is as follows:Net book value.........................Estimated future cash flows......Fair (market) value...................$ 1,300,000$ 1,050,000$ 1,025,000Harlem should report an impairment loss for the current year ofa. $275,000.b. $25,000.c. $0.d. $250,000.In 2018, Batman Company ( an IFRS reporter) acquired equipment at a cost of $620,000. The balance of accumulated depreciation is $340,000. The sum of the discounted future cash flows expected from the use of this asset is $290,000 and the asset's current fair value is $250,000 before considering costs of disposal of $5,000. What is the recoverable amount?Presented below is information related to Wolfie Corp.’s equipment on 12/31/2022: Description Amount Capitalized cost $900,000 Accumulated depreciation to date 750,000 Estimated residual value 40,000 Expected future cash flows 125,000 Estimated Fair value 100,000 The amount of the impairment loss, if any, that Wolfie Corp. should record on 12/31/22 is: $45,000 $50,000 $10,000 $20,000 $25,000 There is no impairment.
