E11.18 (LO3) Presented below is information related to equipment owned by Pujols SpA at December 31, 2019. (PAGE 894) Cost Accumulated depreciation to date Value-in-use €9,000,000 1,000,000 7,000,000 Fair value less cost of disposal 4,400,000 Assume that Pujols will continue to use this asset in the future. As of December 31, 2019, the equipment has a remaining useful life of 4 years. Instructions a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2019. Carrying amount (Book Value) = Cost - Accumulated Depreciation

E11.18 (LO3) Presented below is information related to equipment owned by Pujols SpA at December 31, 2019. (PAGE 894) Cost Accumulated depreciation to date Value-in-use €9,000,000 1,000,000 7,000,000 Fair value less cost of disposal 4,400,000 Assume that Pujols will continue to use this asset in the future. As of December 31, 2019, the equipment has a remaining useful life of 4 years. Instructions a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2019. Carrying amount (Book Value) = Cost - Accumulated Depreciation

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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On December 31, 2020, the entity classified as held for sale a machine with carrying amount of P6,000,000. On this date, the machine is expected to be sold for P5,520,000. Disposal cost is expected at P240,000. On December 31, 2021, the machine had not been sold and management after considering its options decided to place back the machine into operations. On this date, the entity estimated that the machine is expected to be sold at P5,160,000 with the disposal cost at P60,000. The carrying amount of the machine was P4,800,000 on December 31, 2021 if the noncurrent asset was not classified as held for sale. Required: Compute the impairment loss for 2020.
E11-2 Depreciation Methods Sorter Company purchased equipment for $200,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of $20,000. Required: Compute the depreciation expense for 2019 under each of the following methods: 1. straight-line 2. sum-of-the-years’-digits 3. double-declining-balance 4. Next Level What effect does the depreciation of the equipment have on the analysis of rate of return?
On January 2, 2024, Blue Company bought trademark from ShoesInc. for P300,000. The carrying amount of the trademark in ShoesInc.'s books is P240,000. Case 1: How much is the amortization expense in 2024? Case 2: In addition to the previous facts, an independent researchcompany estimated that the remining useful life of thetrademark was 10 years. How much is the amortizationexpense in 2024?
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4. Prepare journal entry on January 1, 2027 to record the return of the machinery to the lessor. Assume thefair value of the asset is P300,000
On december 31 2021, an equipment was classified as held for sale. Its fair value less cost to sell was 6,000,000 while the equipments carrying value on this date was 5,800,000. At what amount will current assets increqse due to this transaction?
E11-18 Depletion Feller Company purchased a site for a limestone quarry for $100,000 on January 2, 2019. It estimate that the quarry will yield 400,000 tons of limestone. It estimates that its retirement obligation has a fair value of $20,000, after which the land could be sold for $10,000. In 2019, 80,000 tons were quarried and 60,000 tons sold. Costs of production (excluding depletion) are $4 per ton. Required: 1. Compute the depletion cost per ton. 2. Compute the total cost of the inventory at December 31, 2019. 3. Compute the total cost of goods sold for 2019.
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P11.2 (LO 1, 2) (Deprec. for partial periods - SL, Act., SYD, and Declining - Balance) The cost of equip. purchased by Charleston, Inc. on June 1, 2020, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of it's service life. It's service life is estimated at 7 years, it's total working hours are estimated at 42,000, and it's total production is estimated at 525,000 units. During 2020, the machine was operated 6,000 hours and produced 55,000 units. During 2021, the machine was operated 5,500 hours and produced 48,000 units. Instructions: Compute deprec. expense on the machine for the year ending Dec. 31, 2020, and the year ending Dec. 31, 2021, using the following methods. a. Straight-line. b. Units-of-output. c. Working hours. d. Sum-of-the-years'-digits. e. Declining-balance (twice the straight-line rate).