If year 2013 had goodwill impairment loss of $30,000, what would be the balance of goodwill after impairment? * O $200,000 $180,000 O $210,000 $170,000 O None of the options is correct
Q: On July 1, 2022, Proton, Inc. sells equipment for P44,000. The equipment originally cost P120,000,…
A: Given: - Cost= 120,000 Accumulated Depreciation=70,000 Salvage value=20,000 Useful life= 5 years
Q: On March 2, 2021, HABIBIYUCK bought an equipment costing P1,200,000. Itis the company’s policy to…
A: Formula: Depreciation rate = ( 100 / Useful life ) x 2
Q: Prepare the following table: eoy is end of year Straight line…
A: A double-declining balance technique is an accelerated depreciation method in which the asset value…
Q: An asset (not an automobile) put in service in June 2020 has a depreciable basis of $1,055,000, a…
A: but subject to the amount of taxable income
Q: JME acquired a depreciable asset on January 1, 2014, for $60,000 cash. At that time JME estimated…
A: Calculate the depreciation expense for first two years.
Q: n March 2, 2021, HABIBIYUCK bought an equipment costing P1,200,000. It is the Company’s policy to…
A: Solution: Depreciation rate - SLM = 1/10 = 10% Deprecation rate - DDB = 10%*2 = 20% Depreciation for…
Q: Presented below is information related to equipment owned by Suarez Company at December 31, 2020.…
A:
Q: Presented below is information related to equipment owned by Sanabel Co. at December 31, 2018 Cost…
A: Loss on impairment = carrying value - Recoverable amount Where, Recoverable amount = Lower of fair…
Q: total accumulated depreciation to be reported in the balance sheet on December 2021.
A: Deprecation is a non cash expense referred to as reduction in the value of the asset due to its…
Q: On June 30, 2021, Maroon sold for P230,000 a machine acquired in 2018 for P420,000. The accumulated…
A:
Q: Presented below is information related to equipment owned by Davis Company at December 31, 2020.…
A: Impairment of Assets:Impairment of an asset refers to sudden decrease of the present value of…
Q: a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020.…
A: a Account Titles and Explanation Debit Credit Loss on impairment 3,648,000…
Q: What is the impact of the error in 2022 net income?
A: Hardy Man Inc. incurred repair costs of a machine in 2021 for P 30,000 and erroneously capitalized…
Q: On December 31, 2020, James Co. had a building with a cost of P30,000,000.00 and accumulated…
A: Under the 150% declining balance method, the rate of depreciation is calculated as 150% *…
Q: On December 31, 2020, MECH COMPAY’S only building has a carrying amount of P1,350,000. The net…
A: Impairment loss=1350000-950000=400000
Q: Robert Sporting Goods Company has another piece of equipment (Q102) with the following cost and…
A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, Recoverable…
Q: On January 1, 2015, HRP Co. purchased equipment for P500,000. It had an estimated useful life of 8…
A: Annual depreciation = ( Cost - Residual Value ) / Estimated useful life…
Q: Max Inc. purchased on January 2, 2020, equipment with a cost of $10,440,000, a useful life of 10…
A: GIVEN DATA An Impairment Loss is recognized when the carrying amount of an asset is greater than…
Q: loss on replacement to be recognized for 2020?
A: Useful life = 10 years Life utilised = 6 years [ Jan 1,2014 - Jan 1, 2020] Accumulated…
Q: (Impairment) Presented below is information related to equipment owned by Suarez Company at December…
A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, Recoverable…
Q: Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an…
A: The straight line method of calculating depreciation is the most simplest way to determine…
Q: Colorado Pte Ltd commenced its first non-structural renovation works in accounting year 2017 at the…
A: According to Section 14Q, the maximum capping limit for the consecutively three years is $300,000.…
Q: Presented below is information related to equipment owned by Metlock Company at December 31, 2020.…
A:
Q: Presented below is information related to equipment owned by Swifty Company at December 31, 2020.…
A: Impairment cost is reduced carrying value of an asset as compared to declined fair value.
Q: Tedesco Company changed depreciation methods in 2020 from double-declining-balance to straight-line.…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.
Q: 56,000, P4,413,000 and P4,240,000 on December 31, 2020; 2021; and 2022. While the fair values are…
A: Revaluation Model In the revaluation model the determination of assets value will be determined by…
Q: Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an…
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…
Q: On December 31, 2022, Joshua Company had an equipment with cost of P9,000,000 and accumulated…
A: Lets understand the basics. As per IAS 36 "Impairment loss", impairment loss arise when recoverable…
Q: ABC Co. purchased machinery that was installed and ready for use on January 3, 2020, at a total cost…
A: Solution: Depreciation rate - SLM = 1/5 = 20% Depreciation rate- DDB = 20%*2 = 40% Cost of machine =…
Q: If the replacement cost of the machine on 31st December 2019 was OMR 70,000 and on 31st December…
A: Depreciation on historical cost of machine =Replacement cost of machine on 31st December , 2019×…
Q: lex Company reported an impairment loss of P5,200,000 in its income statement for the year 2016.…
A: Solution Given Impairment loss on 2016 5200000 Cost of building acquired 80000000…
Q: Equipment R20 000, Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: In 2020, Geiger Co. sold equipment that had cost P294,000 for P176,400. This resulted in a gain of…
A: Net book value of equipment sold = Sales value - gain on sale = P176,400 - P12,900 = P163,500…
Q: Robert Sporting Goods Company has another piece of equipment (Q102) with the following cost and…
A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, Recoverable…
Q: On April 1, 2022, Deland Manufacturing Company purchased a new equipment for P800,000. The equipment…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Presented below is information related to equipment owned by Vaughn Company at December 31, 2020.…
A: Impairment loss = Carrying value - Recoverable value where, Recoverable value = Lower of Fair value…
Q: n 2020, Windsor Corporation discovered that equipment purchased on January 1, 2018, for $59,000 was…
A: A deferred tax liability is an inventory on a company's balance sheet that records taxes that are…
Q: Presented below is information related to equipment owned by Sunland Company at December 31, 2020.…
A: Fair value of the asset = $5424000 Estimated future cash flows = $7910000 Recoverable value of the…
Q: On June 30, 2020, Happy Corporation reported the following information: Equipment at cost…
A: On June 30 2020 Cost 30000000 Accumulated Depreciation 10500000 On Dec 31 2020…
Q: ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated…
A: Given, 1/1/18 - purchased equipment worth P2200000. residual value = P200000. estimated useful life…
Q: Kentucky Enterprises purchased a machine on January 2, 2019, at a cost of P120,000. An additional…
A: Solution 10: Charging installation cost of P50,000 on repair expense, will result in overstatement…
Q: Presented below is information related to equipment owned by Swifty Company at December 31, 2020.…
A: Particulars Amount Cost $9,270,000 Less: Accumulated depreciation 1,030,000 Carrying Amount…
Q: Provide all required journal entries needed on: 1.30 June 2022; 2. 30 June 2023; 3. 30 June 2024.
A: Answer:
Q: What gain or loss should be recognized on the retirement? (Indicate whether gain or loss)
A: Gain or loss should be recognized on the retirement= Cash Proceeds- Carrying value of the asset
Q: Equipment was purchased for $150,000 on July 1, 2020. Freight charges amounted to $7,000 and there…
A: Since the asset has been put to use on Oct 1, so for 2020, depreciation for only 3 months needs to…
Q: te. The equipment had a remaining useful life of 8 years and estimated residual value of P50,000.…
A: Impairment of Assets
Q: On July 1, 2020, New Orleans Corporation purchased equipment at a cost of P340,000. The equipment…
A: Depreciation rate = ( 100 / Useful life ) x 2
Q: On December 31, 2020, Listach Inc. sold a used industrial crane for $600,000 cash. The original cost…
A: Formula: Gain or loss on sale of Asset = Sale value - Book value
Q: On July 1, 2020, New Orleans Corporation purchased equipment at a cost of P340,000. The equipment…
A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/8 years) x 2 = 25%
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- On January 1, 2013, Porsche Company acquired the net assets of Saab Company for $450,500 cash. The fair value of Saab’s identifiable net assets was $374,980 on this date. Porsche Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (Saab). The information for these subsequent years is as follows: Year Present Valueof Future Cash Flows Carrying Value ofSaab’s IdentifiableNet Assets* Fair ValueSaab’s IdentifiableNet Assets 2014 $400,620 $329,851 $339,983 2015 $399,230 $319,497 $345,596 2016 $350,150 $299,900 $325,360 * Identifiable net assets do not include goodwill. (a) For each year determine the amount of goodwill impairment, if any. 2014 2015 2016 Goodwill impairment $ $ $Live Corporation has equipment with a carrying value of 450,000 on December 31, 2021. The following information was available on December 31, 2021: · Expected net cash flows (undiscounted)- P420,000 · Expected net cash flows discounted at 7%- P400,000 · Fair value, using the assets with other assets- P415,000 · Fair value, assuming the assets are sold stand-alone- P428,000 What is the impairment loss that the Company must report in its 2021 income statement for this equipment?Harlem, Inc., was reviewing its assets for impairment at the end of the current year.Information about one of its assets is as follows:Net book value.........................Estimated future cash flows......Fair (market) value...................$ 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.
- Crane Company owns a trade name that was purchased in an acquisition of Wildhorse Co.. The trade name has a book value of $2200000, but according to IFRS, it is assessed for impairment on an annual basis. To perform this impairment test, Crane must estimate the fair value of the trade name. It has developed the following cash flow estimates related to the trade name based on internal information. Each cash flow estimate reflects Crane's estimate of annual cash flows over the next 7 years. The trade name is assumed to have no residual value after the 7 years. (Assume the cash flows occur at the end of each year.) Probability Assessment Cash Flow Estimate 30% $250000 50% 360000 20% 450000 Crane determines that the appropriate discount rate for this estimation is 7%. To the nearest dollar, what is the estimated fair value of the trade name?On January 1, 2021, Bambi Ltd. purchased equipment for $728,000. The equipment was assumed to have an 8-year useful life and no residual value and was to be depreciated using the straight-line method. On January 1, 2023, Bambi's management became concernedthat the equipment may have become obsolete. Management calculated that the undiscounted future net cash flows from the equipment was $523,250, the discounted future net cash flows was $464,100, and the current fair value of the equipment less cost ofdisposal (of $1,800 ) was $455,000. (a)Assuming that Bambi is a private Canadian company following ASPE, identify which model should be used to test for impairment. b) Record the journal entry to record the impairment loss, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and…On January 1, 2021, Bambi Ltd. purchased equipment for $728,000. The equipment was assumed to have an 8-year useful life and no residual value and was to be depreciated using the straight-line method. On January 1, 2023, Bambi's management became concernedthat the equipment may have become obsolete. Management calculated that the undiscounted future net cash flows from the equipment was $523,250, the discounted future net cash flows was $464,100, and the current fair value of the equipment less cost ofdisposal (of $1,800 ) was $455,000. c) Assuming that Bambi is a public Canadian company, identify which model should be used to test for impairment. d) Record the journal entry to record the impairment loss, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit…
- On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had originally cost $180,000 but had a book value of only $110,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman's equipment of book value $200,000 and Brannigan's equipment of book value $150,000. Ackerman reported $300,000 in net income in 2021 (not including any investment income) while Brannigan reported $98,000. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $4,000 per year. A) What is consolidated equipment balance?on january 1 2018 bridgeport ltd purchased equipment for 896000 . the equipment was assumed to have an 8 year useful life and no residual value and was to be depreciated using the straught line method . on january 1 2020 , bridgeport 's management became concerned that the equipment may have become obsolete. management calculated that the undescontinued future net cash flows from the equipment was $644000 , the discounted future net cash flow was $571200 and the current fair value of the equipment was$ 560000 and the cost to sell was zero .a. Record the journal entry to record the imparment loss if any using the cost recovery impairment model . assume that bridgeport is applying ASPE to determine wether there is impairment or not. you must show all the steps in the impairment test.b. Record the journal entry to record the imparment loss if any using the rational entity impairment model . assume that bridgeport is applying IFRS to determine wether there is impairment or not. you must…On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $110,000 in cash. The equipment had originally cost $99,000 but had a book value of only $60,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $550,000 in net income in 2021 (not including any investment income) while Brannigan reported $180,500. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $6,500 per year. What is consolidated net income for 2021? What is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan? What is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream? What is the consolidated net income for 2022 if Ackerman reports $570,000 (does not include…
- On January 1, 20x1, DIAPHANOUS Co. acquired all of the identifiable assets and assumed all of the liabilities of TRANSPARENT, Inc. by paying cash of ₱4,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of ₱6,400,000 and ₱3,600,000, respectively.During 2019, ABC Co. sold for P21,000 some of its plant assets costing P150,000 and having accumulated depreciation of P119,000 at date of sale. The sale of the plant assets should be shown on ABC Co.’s statement of cash flows (indirect method) for the year ended December 31, 2019, as *a. a deduction from net income of P10,000 and a P21,000 increase in cash flows from financing activities b. an addition to net income of P10,000 and P21,000 increase in cash flows from investing activities c. a deduction from net income of P11,000 and P21,000 increase in cash flows from investing activities d. an addition of P21,000 to net income e. answer not givenOn January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had originally cost $180,000 but had a book value of only $110,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method.Ackerman reported $300,000 in net income in 2018 (not including any investment income) while Brannigan reported $98,000. Ackerman attributed any excess acquisition-date fair value to Brannigan’s unpatented technology, which was amortized at a rate of $4,000 per year.a. What is consolidated net income for 2018?b. What is the parent’s share of consolidated net income for 2018 if Ackerman owns only 90 percent of Brannigan?c. What is the parent’s share of consolidated net income for 2018 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream?d. What is the consolidated net income for 2019 if Ackerman reports $320,000 (does not include…