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 What is the value of the impairment loss?
Q: Show complete solution: Consider the following options in purchasing a car: Option 1 = purchase…
A: Calculation of which option are more economical are as follows
Q: 6. An example of a contra-asset account is O A. Advances from Clients. OB. Prepaid Insurance. OC.…
A: Introduction: A contra asset account is an asset account with a negative or zero balance. Contra…
Q: Write a short note on "Accounting Frauds"
A: Accounting fraud is the deliberate manipulation of financial accounts to provide the impression that…
Q: McDonald’s Corporation (MCD) reported the following balance sheet and income statement data for two…
A: Return on Asset is a type of Ratio which comes under Profitability Ratio Category.It gives how much…
Q: Which of the following s he violated?
A: An employee working in an organization must have some ethics and values. The employee should work…
Q: ssume this individual's friend decides to pursue postsecondary education. What are two types of…
A: Loan is the loan means it is a burden upon the shoulders of the taker which has to repay the same to…
Q: Selected ledger account balances for Business Solutions follow. office equipment Accumulated…
A: calculation of above requirement are as follows
Q: starts
A: As specified in the question Charles and Stephanie sign a contract for the project which is settled…
Q: Johnson Manufacturing company, a manufacturer of custom-made drones, uses a job order cost system to…
A: Here discuss about the journal and T-Account for the manufacturing account and its manufacturing…
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: An asset group is being evaluated for an impairment loss. The following financial information is…
A: The impairment loss is calculated by deducting the fair value from the carrying value of the asset…
Q: You are the manager of a successful retail operation. Inflation has been running at 3% per year on…
A: In accounting there are different methods that we can use for accounting of inventory. The main…
Q: Question 4 a. Business decisions rely on certain characteristics which are based on intelligent and…
A: Introduction: A business decision, also defined as an operational decision, is that any choice made…
Q: PROJECT Vice City San Andreas Chinatown t: CASH FLOWS 1 23 -100 10 10 10 10 100 0 4 5 -100 80 40 C 0…
A: Answer:- Value of A is 1. Explanation:- Computation of missing value A by applying the method of…
Q: Problem 8-12 Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on…
A: The solution is based on the MACRS general depreciation system (GDS), and all assets are non-farm…
Q: Arnez Company's annual accounting period ends on December 31. The following information concerns the…
A: Introduction: A journal entry is a record of a commercial contract in a company's accounting…
Q: Cash Accounts receivable Inventory Equipment Total Accounts payable Payable to B 80,000 240,000…
A: Partnership is a firm is legal entity where partner share profit or loss according to the firms deed…
Q: Telimos purchased a machinery for 315,000 on May 1,2017. It is estimated that it will have a useful…
A: Cost of the machine=315,000 Salvage value of the machine=15,000 Useful life of the machine=10 years…
Q: AP 11-2 Allowable Business Investment Losses (ABIL) In 2018, after several years of working part…
A: The optimum taxable income for Lucinda for the calendar year ending on December 31, 2020, is…
Q: Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Price…
A: Cost accounting refers to the set of the procedures which is systematic in manner for reporting as…
Q: Ben Floyd really enjoyed wood shop in high school, so he used an inheritance to buy some basic…
A: Introduction: The term Business refers to an exchange of goods and services between the buyer and…
Q: Select the best answer for the question. 4. Which one of the following accounts is both opened and…
A: In accounting, accounts are mainly classified as: Assets accounts Liabilities accounts Capital…
Q: L. Burnett began Burnett Refinishing Service on July 1. Selected accounts are shown below as of July…
A: Financial statements (FS) are those statements which states the financial health (FH) as well as…
Q: Accounting princippls
A: The accounting is a process to identify the business transactions and record the transactions and…
Q: Siegel Company spent $14,000 on direct supplies and $19,000 on compensation for manufacturing…
A: Related to sales revenue for such units sold, manufacturing costs for the units sold, and overall…
Q: Susan, CA, a practicing chartered accountant has been appointed as an internal auditor of Syarikat…
A: The statutory auditor is the external auditor who forms an opinion on the financial reports…
Q: eds a new HVAC system for his home. He is comparing these three models. One Temp Happier…
A: Depreciation : It is the reduction in the value of assets due to its continuous use and wear and…
Q: As on January 1, 2021, Gerald corp had 480,000 common shares outstanding (no preferred shares…
A: Weighted average common shares can be determined as number shares after taking in to consideration…
Q: A project has an investment cost of $200,000 and a profitability index of 1.6. What is the net…
A: Profitability index = PV of cash inflows/PV of cash outflows PV of cash inflows= 1.6 *$ 200000 = $…
Q: For tax purposes, assume that the maximum taxable earnings are $118,500 for Social Security and…
A: Payroll refers to the amount that should be paid to the workers of the company after deducting…
Q: ournal entries for a series of transactions Prepare journal entries in the General Fund for each of…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: You are conducting an audit on your client's revenue cycle for the 2019 financial year. Your client…
A: The auditor is appointed to form an opinion on the financial statement and the auditor before…
Q: 18. The statement of affairs of Darrell Putix Co. indicates that unsecured creditors without…
A: Expected recovery refers to the defaulted collateral loan and under the case of sale to third party,…
Q: On December 31, 2017, Bulldog Company approved a restricted stock share plan for a number of…
A: Restricted stock share plan is the way of issuing stocks to the existing employees. It is one of the…
Q: During March 2020, Polaro Corporation recorded P40,200 of costs related to factory overhead.…
A: Overheads which was estimated=P40,900 Estimated direct labor hours=5,000 hours Actual hours worked…
Q: You are a Corporate Finance Manager at Penguins plc, a leading operator of domestic waste recycling…
A: Net present value Present value of cash inflows less present value of cash outflows
Q: J, VAT registered taxpayer, had the following data on importation in 2022: Invoice cost (exchange…
A: Here discuss about the details of the computation of VAT payable for the purchase on importation and…
Q: Commando Corp. agrees to sell 100 of its products to M&H Co. for P30,000 in August 2021. (P300 per…
A: The original sale price of the products sold prior to alteration will not be modified. As previously…
Q: rinciples Economic Entity Assumption Monetary Unit Assumption…
A: Accounting Concept/ Principal/ Assumption/ conventions: These are known as Generally Accepted…
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: Debit eginning Balance Debit eginning Balance Debit direct materials cost was: Raw Materials 4,600…
A: The direct costs incurred in production are debited to work in process account. The indirect cost…
Q: Question 1 Price a 90-day bank bill that has a face value of $100,000 and a. b. C. has a yield of…
A: Lets understand the basics. For calcualting bond price based on yield, we need to use below formula.…
Q: Question 3 a. Risk occurs where there are several possible outcomes which can be assigned the…
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: The following information applies to the questions displayed below.] Simon Company’s year-end…
A: Solution: Days sales uncollected is computed as = Average accounts receivables * Nos of days in year…
Q: A. Based on the above and the result of your audit, answer the following(Round off present value…
A: Here discuss about the details of the present value for the notes receivable and its interest income…
Q: Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling…
A: The cost of goods manufactured includes the total cost incurred by company to produce the goods, add…
Q: Lender Credit unions Credit unions Credit unions Credit unions Credit unions Credit unions…
A: Credit union refers to the kind of financial cooperative which offers the traditional services of…
Q: Cullumber Publishing Co. publishes college textbooks that are sold to bookstores on the following…
A: Introduction: A journal entry is used to register a commercial transaction in a corporation's…
Q: On January 1, 2021, Wilke Corp, had 480,000 shares of common stock outstanding. During 2021, it had…
A: Company's profitability can be identified by earnings per share as it shows earnings per share and…
Q: Assume Rock Böttöl is from the most recent fiscal year. Sales Cost of goods Sold Direct expenses…
A: The Departmental contribution to overhead is the sum that each department contributes to the…
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.