PT Kenko is committed to disposing of the building used by CGU ABC. As of June 30, 2021, all the criteria for this building indicate that the building can be categorized as a non-current asset for sale. The company treats building records using the cost model. The following are the details of the CGU ABC Building as of June 30, 2021: Scenario 1 USD Scenario 2 USD Cost (purchased on 1 Jan 2019) 10,000 10,000 Depreciation rate (straight line, no residual value) 10% 10% at 30 June 2021 Fair value 7,000 7,000 Cost to sell 200 200 at 30 December 2021 Fair value 7,000 7,800 Cost to sell 100 100 Disposal is planned to take place in February 2022. Instructions: Make the necessary journal entries for both scenarios on June 30, 2021 and December 30, 2021 (impairment/reversal of impairmen
PT Kenko is committed to disposing of the building used by CGU ABC. As of June 30, 2021, all the criteria for this building indicate that the building can be categorized as a non-current asset for sale. The company treats building records using the cost model. The following are the details of the CGU ABC Building as of June 30, 2021: Scenario 1 USD Scenario 2 USD Cost (purchased on 1 Jan 2019) 10,000 10,000 Depreciation rate (straight line, no residual value) 10% 10% at 30 June 2021 Fair value 7,000 7,000 Cost to sell 200 200 at 30 December 2021 Fair value 7,000 7,800 Cost to sell 100 100 Disposal is planned to take place in February 2022. Instructions: Make the necessary journal entries for both scenarios on June 30, 2021 and December 30, 2021 (impairment/reversal of impairmen
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 38P
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PT Kenko is committed to disposing of the building used by CGU ABC. As of June 30, 2021, all the criteria for this building indicate that the building can be categorized as a non-current asset for sale. The company treats building records using the cost model. The following are the details of the CGU ABC Building as of June 30, 2021:
|
Scenario 1 USD |
Scenario 2 USD |
|
| Cost (purchased on 1 Jan 2019) | 10,000 | 10,000 |
| 10% | 10% | |
| at 30 June 2021 | ||
| Fair value | 7,000 | 7,000 |
| Cost to sell | 200 | 200 |
| at 30 December 2021 | ||
| Fair value | 7,000 | 7,800 |
| Cost to sell | 100 | 100 |
Disposal is planned to take place in February 2022. Instructions: Make the necessary
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