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Dec-31-14 Depreciation Mar-31-15 Impairment Mar-31-15 Depreciation Dec-31-15 Carrying amount € 4,000 (125) 3,875 (375) 3,500 (339) 3,161 Fair value Costs to sell Value in use € € 4,500 4,100 3,600 € 200 700 750 3,500

Dec-31-14 Depreciation Mar-31-15 Impairment Mar-31-15 Depreciation Dec-31-15 Carrying amount € 4,000 (125) 3,875 (375) 3,500 (339) 3,161 Fair value Costs to sell Value in use € € 4,500 4,100 3,600 € 200 700 750 3,500

Intermediate Accounting: Reporting And Analysis
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 8P: At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the...
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Q₁ 6 Indigo Ltd. decided to sell one of its cutting machines and classified it as held for sale after the criteria were met on March 31, 2015, and these criteria are still met on December 31, 2015. Indigo's year-end is December 31. Click here and take a look at the information about the cutting machine, then complete the following paragraph about the measurement of it. Select the correct answers from the drop-down boxes. Immediately before initial classification as held for sale on March 31, 2015, the cutting machine should be remeasured at €3,875 Upon initial classification as held for sale, the cutting machine should be measured at and an impairment loss of € 0 should be recognized. 3,500 Depreciation on the cutting machine shall cease December 31, 2015 the cutting machine should be remeasured to an amount of € 3, 600 Show Transcribed Text Dec-31-14 Depreciation Indigo Ltd.-Information about the cutting machine: Mar-31-15 Impairment Mar-31-15 Depreciation Dec-31-15 Carrying amount € 4,000 (125) 3,875 (375) G 3,500 (339) 3,161 Fair value Costs to sell Value in use € € 200 € 4,500 when classified as held for sale. At 4,100 3,600 700 750 3,500
Transcribed Image Text:Q₁ 6 Indigo Ltd. decided to sell one of its cutting machines and classified it as held for sale after the criteria were met on March 31, 2015, and these criteria are still met on December 31, 2015. Indigo's year-end is December 31. Click here and take a look at the information about the cutting machine, then complete the following paragraph about the measurement of it. Select the correct answers from the drop-down boxes. Immediately before initial classification as held for sale on March 31, 2015, the cutting machine should be remeasured at €3,875 Upon initial classification as held for sale, the cutting machine should be measured at and an impairment loss of € 0 should be recognized. 3,500 Depreciation on the cutting machine shall cease December 31, 2015 the cutting machine should be remeasured to an amount of € 3, 600 Show Transcribed Text Dec-31-14 Depreciation Indigo Ltd.-Information about the cutting machine: Mar-31-15 Impairment Mar-31-15 Depreciation Dec-31-15 Carrying amount € 4,000 (125) 3,875 (375) G 3,500 (339) 3,161 Fair value Costs to sell Value in use € € 200 € 4,500 when classified as held for sale. At 4,100 3,600 700 750 3,500
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