Hi there, can help with answering the attached questions, thanks so much. Exercise 11-27 (Algo) Impairment; property, plant, and equipment [LO11-8]Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its restaurants located in the center of alarge urban area have experienced declining profits due to declining population. The company's management has decided to test theassets of the restaurants for possible Impairment. The relevant information for these assets is presented below.Book valueEstimated undiscounted sum of future cash flowsFair valueRequired:1. Determine the amount of the Impairment loss.2. Determine the amount of the Impairment loss assuming that the estimated undiscounted sum of future cash flows is $9.6 million andfair value is $6.4 million.$9.3 million5.4 million4.9 million(Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place, (1.e..5,500,000 should be entered as 5.5)).1. Impairment loss2. Impairment lossmillionmilion

Impairment Loss: When the carrying value of assets is greater than its book value impairment loss…

Required: 1. Determine the amount of the Impairment loss. 2. Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $9.6 million and air value is $6.4 million. Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place. (I.e.. 5.500,000 should be entered as 5.5)). 1. Impairment loss 2. Impairment loss million million

Required: 1. Determine the amount of the Impairment loss. 2. Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $9.6 million and air value is $6.4 million. Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place. (I.e.. 5.500,000 should be entered as 5.5)). 1. Impairment loss 2. Impairment loss million million

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 67E

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8. ABC has determined that one of its cash generating units (CGU) is impaired. The assets of the CGU at their book value are: Land – 4,000,000; Factory – 1,200,000; Machinery and Equipment – 1,800,000. The value in use of the cash generating unit is P5,500,000. The factory’s fair value is P1,000,000. The impairment loss allocated to Machinery and Equipment is? (do not round off the percentage, round off your final answer to the nearest peso)
12. ABC has determined that one of its cash generating units (CGU) is impaired. The assets of the CGU at their book value are: Goodwill – 250,000; Land – 4,000,000; Factory – 1,200,000; Machinery and Equipment – 1,800,000. The value in use of the cash generating unit is P6,000,000. The impairment loss allocated to factory account assuming the impairment loss specific to machinery and equipment is 300,000 is? (do not round off the percentage, round off your final answer to the nearest peso)
Y3 (e) Kwik Ltd (Kwik) runs a unit in Ablekuma Metropolis that has suffered a massive drop in income due to failure in its technology on 1 January 2018. As a result, the following carrying amounts were recorded in the books immediately before the impairment test. GH¢million Goodwill 20 Technology 5 17 Equipment 10 Land 50 Buildings 30 Other net assets 40 The value in use of the unit is estimated at GH¢85 million, and Kwik has received an offer of GH¢75 million for the unit. The technology is worthless, following its complete failure. Other net assets include inventory, receivables and payables. It is considered that the carrying amount of other net assets is a reasonable representation of its net realizable value. Required: In accordance with IAS 36: impairment of assets, show the accounting treatment for the above transactions.
Problem 14-86 (b) (LO. 9) Griffin sold three items of business equipment for a total of $144,000. None of the equipment was appraised to determine its value. Griffin's cost and adjusted basis for the assets are shown below. Asset Cost AdjustedBasis Equipment1 $63,800 $40,000 Equipment 2 34,800 32,000 Equipment 3 46,400 22,000 Total $145,000 $94,000 Griffin has been unable to establish the fair market values of the three assets. All he can determine is that combined they were worth $144,000 to the buyer in this arm's length transaction. How should Griffin allocate the sales price and figure the gain or loss on the sale of the three assets?
27. Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should A) include a credit to the equipment account. B) not be made if the equipment is still being used. C) include a credit to the equipment accumulated depreciation account. D) recognize an unusual loss for the period.
q15 Which of the following are circumstances that may indicate that the asset may be impaired? (i) A motor vehicle has been damaged in an accident (ii) A debtor is in financial difficulty (iii)Consumer tastes have changed in the market and sales prices of the inventory have been reduced so that the goods will have to be sold at much lower prices, if at all (iv) Cost prices of raw materials used in production have increased Select one: a. (i), (ii), (iii) and (iv) b. (i), (ii), (iv) only c. (i) and (iv) only d. (iv) only
18. The property, plant and equipment account of Toy Shop Manila was revisited by its property officers. They discovered that due to obsolescence, machineries with a total historical cost of P2,100,000 and accumulated depreciation of P1,750,000, will no longer provide economic benefits to the company wither from its disposal or use.Which of the following will be included in the journal entries to record the derecognition of these machineries? A. credit Accumulated Depreciation, P1,750,000 B. credit Loss from Derecognition, P350,000 C. credit Machineries, P350,000 D. credit Machineries, P2,100,000
PARRISH 8 8-1 ACQUISITIONS OF ASSETS For the following asset plese identify the costs. For any costs that are not included in the asset cost, specify how they would be recorded. Invoice price $90,000 (2/10, n/30) Sales Tax 3,400 Freight to ship to Company 6,000 Transport to factory 1.900 Repair of chip in machine from damage in loading 500 Training of operators 3,600 Lunch for truck drivers in transit 25
7.On Dec 31, 2021, ABC Company has an equipment with the following cost and accumulated depreciation: Equipment P9,000,000; Accumulated depreciation P3,000,000. Due to obsolescence and physical damage, the equipment is found to be impaired. On Dec 31, 2021, the company has determined the following: Fair value of equipment less cost to sell P4,500,000; Value in use of the equipment P4,000,000. ABC Company should report an impairment loss for the year 2021 at
Using the updates of accounting standard, AASB 13 Fair Value Measurement. A senior partner at your firm has advised a key client, ABC Industry that for the characteristic of relevance to be met, their specific water and waste-water infrastructure non-current assets should be valued using the revaluation model, at their fair value, rather than historic cost. This means these major classes of assets need to be revalued under AASB116. However, the client would like more information as they believe there is no market for the assets, nor can a market price be inferred. The partner has asked you to brief the client and the partnership team in on the fair value hierarchy and what implications each of these techniques have for the reliability of the council’s fair value disclosures. 1) what information should be incorporated when determining the fair value and disclosed?
Using the updates of accounting standard, AASB 13 Fair Value Measurement. A senior partner at your firm has advised a key client, ABC Industry that for the characteristic of relevance to be met, their specific water and waste-water infrastructure non-current assets should be valued using the revaluation model, at their fair value, rather than historic cost. This means these major classes of assets need to be revalued under AASB116. However, the client would like more information as they believe there is no market for the assets, nor can a market price be inferred. The partner has asked you to brief the client and the partnership team in on the fair value hierarchy and what implications each of these techniques have for the reliability of the council’s fair value disclosures. 1) What information should be incorporated when determining the fair value and disclosed? 2) How this disclosure requirement will be useful to maintain or enhance the faithful representation of the accounting…
Po34. Coronado Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRSThe carrying amounts of the division's assets at December 31, 2023, are as follows : Land $27,000 Building56,000 Equipment36,000 Vehicles19,000 $138,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $124,200, fair value less costs to sell is $93,000 , and undiscounted future net cash flows are $162,000.