In such a disclosure, what total amount should be reported for the equipment and inventory? MZubiri Company owned the following two assets at year end:Equipment InventoryCurrent cost100,00080,000Recoverable amount95,00090,000The entity voluntarily disclosed information about current cost at year-end.In such a disclosure, what total amount should be reported for the equipment and inventory?

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Description: In such a disclosure, what total amount should be reported for the equipment and inventory? MZubiri Company owned the following two assets at year end:Equipment InventoryCurrent cost100,00080,000Recoverable amount95,00090,000The entity voluntarily di

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MZubiri Company owned the following two assets at year end: Equipment Inventory 80,000 Current cost 100,000 Recoverable amount 95,000 90,000 The entity voluntarily disclosed information about current cost at year-end. In such a disclosure, what total amount should be reported for the equipment and inventory?

MZubiri Company owned the following two assets at year end: Equipment Inventory 80,000 Current cost 100,000 Recoverable amount 95,000 90,000 The entity voluntarily disclosed information about current cost at year-end. In such a disclosure, what total amount should be reported for the equipment and inventory?

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 5C: Nonrecurring Items Lynn Company sells a component of its business in the middle of the year. On the...

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Nonrecurring Items Lynn Company sells a component of its business in the middle of the year. On the date of sale, the net proceeds received were less than the aggregate book value of the components net assets. The component was operating at a loss from the beginning of the year. In addition, Lynn had one of its manufacturing plants destroyed by an earthquake during the year. Earthquakes are not uncommon in Lynns operating environment. Required: 1. Explain how Lynn should report discontinued operations of a component of its business on its income statement for this year. Do not discuss earnings per share requirements. 2. Explain how Lynn should report the loss from the earthquake on its income statement for this year. Do not discuss earnings per share requirements.
Sumit Ltd reported the following assets in its statement of financial position at 30 June 2021: Land 25,000 Patent 100,000 Plant 250,000 Accumulated Depreciation (75,000) Goodwill 20,000 Inventory 40,000 Accounts receivables 30,000 Cash 5,000 Accounts payables 20,000 The recoverable amount of the entity was calculated to be $354,000. All assets are measured using the cost method. Inventory is measured at the lower of cost and net realisable value in accordance with AASB102 Inventories. The receivables were all considered to be collectable. Required: 1. Allocate the impairment loss to assets in the CGU as per AASB136 (Please round off to the nearest dollar). 2. Prepare journal entries to record the allocation of the impairment loss at 30 June 2021. Descriptions/Narrations are NOT required. Asset Carrying Amount Proportion Allocation of Loss Adjusted Carrying Amount…
On February 14, 2022, Frozen Company classified a non-current asset as held for sale. At that time, the asset's carrying amount was P64,000. It's fair value was estimated at P48,000 and the cost to sell at P3,800. On May 9, 2022, the asset was sold for P42,000 and paid transaction costs of P2,000. The company accounts for non-current assets using the cost model. 9. How much impairment loss is to be recorded by Frozen relating to the non-current assets held for sale? 10. At what amount should the non-current assets held for sale be recorded on Feb. 14, 2022? 11. How much gain(loss) is to be reported by Frozen on the disposal of the non-current assets held for sale?
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