At December 31, Year 5, Aaron Co. had the following property, plant, and equipment:AssetFair ValueCost to SellPresent Value of All Cash Flows Expected from the AssetSum of All Undiscounted Cash Flows Expected from the AssetUseful Life from the Acquisition Date (Depreciation Method)Residual ValueEquipment$220,000$5,000$230,000$255,0006 years (Straight Line)$0Machine set 310,000 8,000 320,000 335,000 4 years (SYD) 0Land 660,000 9,000 600,000 640,000 Determine the impairment losses recognized for Year 5 under U.S. GAAP and IFRS. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive numbers. If the correct answer is zero, enter a zero (0).Purchase Receipt 3 - LandPurchase Date: 1/1/Year 3Purchase Amount: $650,000Purchase Receipt 2 - Machine SetPurchase Date: 1/1/Year 5Purchase Amount: $600,000Purchase Receipt 1 - EquipmentPurchase Date: 7/1/Year 2Purchase Amount: $600,000

Calculate carrying value of assets:

Answered: At December 31, Year 5, Aaron Co. had…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...

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At December 31, Year 5, Aaron Co. had the following property, plant, and equipment:

Asset	Fair Value	Cost to Sell	Present Value of All Cash Flows Expected from the Asset	Sum of All Undiscounted Cash Flows Expected from the Asset	Useful Life from the Acquisition Date (Depreciation Method)	Residual Value
Equipment	$220,000	$5,000	$230,000	$255,000	6 years (Straight Line)	$0
Machine set	310,000	8,000	320,000	335,000	4 years (SYD)	0
Land	660,000	9,000	600,000	640,000

Determine the impairment losses recognized for Year 5 under U.S. GAAP and IFRS. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive numbers. If the correct answer is zero, enter a zero (0).

Purchase Receipt 3 - Land
Purchase Date: 1/1/Year 3	Purchase Amount: $650,000

Purchase Receipt 2 - Machine Set
Purchase Date: 1/1/Year 5	Purchase Amount: $600,000

Purchase Receipt 1 - Equipment
Purchase Date: 7/1/Year 2	Purchase Amount: $600,000

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