How much of the impairment reversal is recognized in profit or loss? How much of the impairment reversal is recognized in equity?

Q: Samson Company applies revaluation accounting to plant assets with a carrying value of P800,000, a…

A: Given carrying value = P 800,000 Depreciation under straight line method when there is no residual…

Q: On January 1, 20X1, the company purchased an equipment for $180,000. The equipment has a useful life…

A: Given, Jan 1 20X1: Purchase cost=$180,000Useful life=12 yearsResidual value=0

Q: Entity A acquired an asset that had a cost of P130,000. The asset is being depreciated over a 5-year…

A: Depreciation Expenses:- It is an expense incurred due to the continuous use of an asset. In this,…

Q: Tongas Company applies revaluation accounting to plant assets with a carrying value of $1,600,000, a…

A: The growth in value of an investment before it is sold is known as an unrealized gain. An unrealized…

Q: depreciation to be charged against the machine during each of the remaining years of its useful…

A: Accounting for change in accounting estimate is envisaged in IAS 8 It is pertinent to note that the…

Q: On January 1, 20X6, RAST Co. purchased a machine for $1,980,000 and depreciated it by the…

A: From January 1, 20X6 to January 1, 20X9: machine has been used for 3 years.   Annual Depreciation…

Q: Question 7.17 please explained in detail.

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: On January 1, 2011, FALLACIOUS MISLEADING Co. acquired a building for ₱4,000,000. The asset is…

A: Let's start with the, Impairment loss :- When asset book or carrying amount exceeds its ‘recoverable…

Q: During the year ended 31 December Year 6, a motor vehicle originally purchased for RM5,500 in Year 2…

A: "Since you have posted a question with multiple sub parts we will solve first 3 sub parts for you.…

Q: Bailand Company purchased a building for $366,000 that had an estimated residual value of $16,000…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: On January 1, 2008, Minco Corporation purchased, for $100,000, equipment having a useful life of…

A: Depreciation is a decrease in the value of an asset due to various reasons like normal wear and…

Q: Slovac Company purchased a machine that has an estimated useful life of eight years for $7,500. Its…

A: Determine the depreciation rate applied each year.

Q: On July 1, 2004, Gonzalez Corporation purchased factory equipment for P450,000. Salvage value was…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: On January 1, 20x1, XYZ G Co. acquired a building for ₱4,000,000. The asset is depreciated using the…

A: Fixed assets are those assets that are held by the business for a longer period of time. Examples of…

Q: The entry to record depreciation for this same asset in year two will include a Select one: a.…

A: Given information is: Samson Company applies revaluation accounting to plant assets with a carrying…

Q: On January 1, 20x1, FALLACIOUS MISLEADING Co. acquired a building for ₱4,000,000. The asset is…

A: SOLUTION- IMPAIRMENT LOSS-  WHEN ASSET BOOK OR CARRYING VALUE EXCEEDS THE RECOVERABLE VALUE.…

Q: on january 1 , the company purchased equipment that cost $10,000. The equipment is expected to be…

A: Entries with respect to equipment are as follows:

Q: On the first day of its current fiscal year, Lupao Corporation purchased equipment costing P400,000…

A: Depreciation rate = P160,000 / P400,000 = 40%

Q: Gant Co. purchased a machine on July 1, 2001, for $500,000. The machine has an estimated useful life…

A: Step 1  Solution:  Introduction:  Depreciation means a reduction in the value of an asset due to…

Q: On January 1, Year 1, the Dole Company purchased an asset that cost $154,000. The asset had an…

A: preparation Income statement and journal entry are as follows

Q: layna Ltd bought a machine on 1 January 20X2 for GHS 70,000. The useful life of this machine was…

A: Deprecation is the decrease in value of the asset due to wear, tear and obsolescence. An impaired…

Q: On January 1, 20x1, ABC Company purchased a machine for P4,000,000. The machine has a useful life of…

A: Annual Depreciation (straight line method) = (Cost of the machine- Residual value) / Expected life…

Q: Marigold Corp. applies revaluation accounting to plant assets with a carrying value of $1650000, a…

A: The depreciation expense refers to the reduction in the value of fixed assets due to the use of that…

Q: Obaid Co. purchased equipment for $1,000,000 which was estimated to have a useful life of 15 years…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: How much of the impairment reversal is recognized in profit or loss? How much of the impairment…

A: Carrying amount = recoverable amount - depreciation Carrying amount in january 1 20x6 =…

Q: On January 1, the company purchased equipment that cost $10,000. The equipment is expected to be…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Alayna Ltd bought a machine on 1 January 20X2 for GHS 70,000. The useful life of this machine was…

A: Impairment loss According to IAS 36 which was applicable in the case of building, land, intangible…

Q: On December 31, 2021, Alexis Company has an item of machinery with a cost of P4,500,000 and an…

A: Impairment loss = Carrying value - Recoverable value Recoverable value = Lower of Value in use and…

Q: The Bailand Company purchased a building for P 210,000 that had an estimated residual value of…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an…

A: Loss on disposal of asset = Equipment - Accumulated depreciation = $230,200 - $207,180 = $23,020

Q: An asset was originally purchased by the Sampson Corp. for $260,000. The depreciable base was…

A: Lets understand the basics. Salvage value is value expected to be derived from the sale of machinery…

Q: An entity purchased an asset on 1 January 2006 for OMR 10m. The asset has a useful life of 10 years…

A: The depreciation is charged on fixed assets as reduction in the value of fixed assets with the…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an…

A: As per straight line method of depreciation Depreciation per annum = (cost - Residual value) /useful…

Q: A company acquired machinery with cost of P2,200,000. with an estimated useful life of 10 years and…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Pinewood Corporation purchased a piece of equipment for S70,000. It estimated an 8-year life and a…

A: Answer 1) Calculation of Depreciation expense as per Original Estimate Annual depreciation expense =…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,00O. The same had an…

A: Depreciation as per straight line method = (cost - salvage value) /useful life =  P5000, 000/8 =…

Q: On January 1, 2011, ECLAR Co. acquired a building for ₱4,000,000. The asset is depreciated using the…

A: The impairment loss on any fixed assets is the reduction in the value of asset. If the recoverable…

Q: Colvin Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The…

A: Calculate the year 1 depreciation for 3 months as follows: Year 1 depreciation = 2*(Book value of…

Q: Required: 1. Identify the method of depreciation and compute the depreciation expense for the third…

A:

Q: The Bailand Company purchased a building for P 210,000 that had an estimated residual value of…

A: Depreciation represents the reduction in the value of long-term assets for the useful life of the…

Q: On January 1, Year 1, the Dole Company purchased an asset that cost $154,000. The asset had an…

A: Income statement (IS) refers to the financial statement which is prepared by companies in…

Q: On January 1, 2021, Canton Inc. has equipment having a useful life of 10 years with the following…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: A company acquired machinery with cost of P2,200,000. with an estimated useful life of 10 years and…

A: Here in this question, we are required to calculate depreciation and revaluation surplus.…

Q: Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful…

A: Double decline rate =110×2=20%per year Note :Year 1 depreciation charged for 6 monthsYear 4…

Q: An entity purchased equipment on January 1, 20x1 for ₱5,000,000. The equipment had a useful life of…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: Kerr Company purchased a machine for P115,000 on January1, year 1, the company’s first day of…

A: As per the historical cost concept, an asset and liabilities should be recorded at the historical…

Q: A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage…

A: Given the following information: Method of depreciation: Straight line method Useful life of…

Q: A company purchased a piece of equipment for $30,000 on January 1, 2019. Management estimates…

A: When the carrying value of an asset is not recoverable, a company records a write-off referred to as…

Q: MABC Company reported an impairment loss of P2,000,000 in 2020. This loss was related to an item of…

A: Impairment loss: A reduction in net carrying value (acquisition cost minus depreciation) of an asset…