On 30 September 20X7 the impairment review was carried out. The following amounts were established in respect of the machine: $ Carrying amount 850,000 Value in use 760,000 Fair value 850,000 Costs of disposal 30,000 What should be the carrying amount of the machine following the impairment review?

On 30 September 20X7 the impairment review was carried out. The following amounts were established in respect of the machine: $ Carrying amount 850,000 Value in use 760,000 Fair value 850,000 Costs of disposal 30,000 What should be the carrying amount of the machine following the impairment review?

Name: On 30 September 20X7 the impairment review was carried out. The follow
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Description: On 30 September 20X7 the impairment review was carried out. The following amounts were established inrespect of the machine:$Carrying amount 850,000Value in use 760,000Fair value 850,000Costs of disposal 30,000What should be the carrying amount of th

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PB: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
On 30 September 20X7 the impairment review was carried out. The following amounts were established in respect of the machine: $ Carrying amount 850,000 Value in use 760,000 Fair value 850,000 Costs of disposal 30,000 What should be the carrying amount of the machine following the impairment review? A $760,000 B $820,000 C $850,000 D $790,000
on 30 september 20x7, the impairment review was carried out. the following amounts were established in respect of the machine : carrying amount: 850,000 value in use:760,000 fair value : 850,000 cost of disposal : 30,000 what should be the carrying amount of the machine following the impairment review
On December 31, 20x7, a manufacturing plant with a carrying amount of P40,000,000 (cost of P50,000,000 less accumulated depreciation of P10,000,000) was tested for impairment. An impairment loss of P12,000,000 was recognized and the basis of the recoverable amount was the estimated fair value less costs to sell of P28,000,000. The plant had a remaining useful life of 10 years. On December 31, 20x9, there are indications that the impairment loss recognized in 20x7 may be reversed. The value in use is estimated at P35,000,000 whilst the fair value less costs to sell is estimated at P30,000,000. What is the amount of impairment reversal should be recognized on December 31, 20x9?
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The components of the cost of a major item of equipment are given below. GHS Purchaseprice 780,000 Import duties 117,000VAT (refundable) 78,000 Site preparation 30,000 Installation costs 28,000 Pre-production 18,000 Initial operating losses before the asset reaches planned performance…
The components of the cost of a major item of equipment are given below.GHSPurchase price 780,000Import duties 117,000VAT (refundable) 78,000Site preparation 30,000Installation costs 28,000Pre-production costs 18,000Initial operating losses before the asset reaches planned performance 50,000Estimated cost of dismantling and removal of the asset, recognized as a provision under IAS 37 Provisions,Contingent Liabilities and Contingent Assets 100,0001,201,000In accordance with IAS 16 Property, Plant and Equipment, what amount should be recognized as the cost of the asset?
On January 2, 20x1, equipment was acquired at a cost of $189,000.was assigned a useful life of 6 years, a residual value of $21,000 and was determined to be depreciated using the straight-line method.depreciated using the straight-line method. On January 2, 20x4, the equipment underwentequipment underwent an extraordinary repair at a cost of $17,500. ThisThe investment in the equipment extended its useful life by two years in addition to the original estimate and its estimated residual value wasoriginal estimate and its estimated residual value was changed to $25,000.Instructions:1. Prepare the entry capitalizing the investment made on January 2, 20x4.2. Prepare the December 31, 20x4 depreciation expense entry.- Include organized evidence of computations performed.
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