Sheridan Company purchased equipment in 2019 at a cost of $917000. Two years later it became apparent to Sheridan Company that this equipment had suffered an impairment of value. In early 2021, the book value of the asset is $588000 and it is estimated that the fair value is now only $357000. The entry to record the impairment is

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Q: Shellfish Company determined that, due to the obsolescence, equipment with an original cost of…

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Q: At the beginning of the year 2019. Itlog Company has an investment property acquired at a cost of $…

A: At beginning of year 2019, Itlog company acquired property at cost = $2000000 Useful life of…

Q: ecause the fair value of the property cannot be determined reliably without undue cost or effort on…

A: Unearned rent is the rent received in advance for the service to be provided in future.

Q: Swift Company purchased a machine on January 1, 2016, for $300,000. At the date of acquisition, the…

A: Depreciation Depreciation refers to the allocation of the cost of an asset to its estimated life.…

Q: PUP CAF Company reported an impairment loss of P2,000,000 in 2020. This loss was related to an item…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

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A: The value of Goodwill of General motors declines in 2021 to 5087 from 5230 in 2020. The decrease is…

Q: Bili Company acquired a building on January 1, 2019 for P 9,000,000. At that date the building had a…

A: Depreciation expense is related to the drop in the value of an asset periodically because of the…

Q: Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: On January 1, 2020, Elite Company purchased equipment with a cost of P11,000,000, useful life of 10…

A: SOLUTION- DEPRECIATION IS AN ACCOUNTING METHOD OF ALLOCATING THE COST OF A TANGIBLE ASSET OVER ITS…

Q: On December 31, 2019, an equipment with a carrying amount of P6,500,000 (cost of P10,000,000 less…

A: Impairment of fixed assets is a situation which means market valuation of the asset is far less than…

Q: At 30 June 2019, there was an indication that Modern Machineries Ltd's machinery might be impaired.…

A: Carrying Amount = Cost of asset - Accumulated depreciation = $925,000 - $300,000 = $625,000…

Q: TGIF Company owned a building on January 01, 2019, with historical cost of P52,000,000. The property…

A: A revaluation surplus is a part of the equity account and it represents an increase in the value of…

Q: Burmilla purchased an equipment on January 1, 2020 at a cost of P10,000,000. This equipment was…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: suns incorporated classified their buildings as held for sale on june 1, 2020. on this date, the…

A: Non-current assets are assets are assets other than current assets, i.e. assets usually having a…

Q: On January 1, 2019, Melody Company entered, as a lessor, into a five-year non-cancelable operating…

A: Average lease payment per year = Total lease payment / Term of lease = P1,500,000 / 5 years =…

Q: On May 1, 2019, Al-Quds Co. purchased a trademark with a cost of $120000. The trademark is…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: On January 1, 2021, an impairment test was conducted by Jess Co. on its Radio Equipment which has an…

A: Carrying value of equipment = Cost  - Accumulated depreciation  = P1,000,000 - P300,000 = P700,000…

Q: esidual value and will be depreciated using the straight  line method.   On March 1, 2020 the…

A: journal entries refer to the concept of documenting all the transactions of a company in its books.

Q: salvage value. The Company uses straight-line depreciation. At December 31, 2021 and December 31,…

A: Concept of Impairment of assets

Q: On January 1, 2021, Bug Company purchased equipment with a cost of P10,440,000, a useful life of 10…

A: The change in the carrying value of an asset due to a change in the useful life or change in the…

Q: On January 2, 2020, KENNYInc. made a test of impairment on one of the buildings carried as plant…

A: After transfer ,rule of new IAS applies.

Q: On January 2, 2019, Jillian Company made a test of impairment on one of its buildings carried as…

A: Revaluation surplus is disclosed in the equity section of the company’s statement of financial…

Q: Shellfish Company determined that, due to the obsolescence, equipment with an original cost of…

A: Calculation of Carrying Value of Equipment on January 1, 2020 Carrying value of equipment =…

Q: Sheridan Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a…

A: Lets understand the basics. In stright line basis, depreciation is calculated in equal installment…

Q: Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: USK COMPANY purchased a wood cutter on September 1, 2019 for P652,000. At the time of acquisition,…

A: solution: given: purchase price (cost )     =P652,000 useful life           =14 years residual value…

Q: On December 31, 2019, an equipment with a carrying amount of P6,500,000 (cost of P10,000,000 less…

A: Concept of Impairment of assets

Q: An equipment was purchased by BB Company on January 1, 2019 for P5,000,000 with estimated useful…

A: Solution Calculation of accumulated depreciation = Equipment / estimated life. = 5000000 /10. =…

Q: Ventura Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: It has to be treated prospective. There is no cumulative effect. Therefore option d ₱0 is correct

Q: On January 1, 2020, Company discovered that it had incorrectly expensed a P2,100,000 machine…

A: Definition: Assets: These are the resources owned and controlled by business and used to produce…

Q: 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation…

A:

Q: On January 1, 2019, Ivanhoe Corporation acquired machinery at a cost of $1200000. Ivanhoe adopted…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. firm can use…

Q: On January 1, 2020, Diluc acquired land for a cost of P3,000,000 and a building costing P6,000,000.…

A: Land is not a depreciable asset , therefore no depreciation will be charged on Land . As per…

Q: Gia Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: 1. It has to be handled prospectively, therefore there is no cumulative effect on tax. Answer is…

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A: Patents are intangible assets (those which do not have physical appearance). Intangible assets are…

Q: riole Company purchased a machine on January 1, 2019, for $927000. At the date of acquisition, the…

A: Solution Given Cost 927000 Original estimated life 6 years Revised useful life 8…

Q: On January 1, 2021, Save Company discovered that it had incorrectly expensed a P2,100,000 machine…

A: Compute the depreciation per year: Depreciation per year = (P2,100,000-100,000)/10 = P200,000 Thus,…

Q: 1, 2020, Cullumber Corp. acquired a machine at a cost of $1020000. It is to be depreciated on the…

A: Depreciation is an accounting method for dispersing a tangible or physical asset's cost over its…

Q: Ventura Corporation purchased machinery on January 1, 2019 for P630,000. The company used the…

A: Net book value at the end of 2020 = Cost of the assets - accumulated depreciation under sum of digit…

Q: impairment loss reported in profit or loss for the year 2026?

A: Depreciation per year: = (Cost - salvage)/Useful life  = (P100000 - P10000)/10  = P9000 per year…

Q: On 1st January 2019, Maali limited had an old machinery with a cost of Rwf 16,000 and accumulated…

A: Impairment of Loss : As per IAS 36 Impairment of Assets an entity's assets are not carried in the…

Q: On January 1, 2019, Melody Company entered, as a lessor, into a five-year non-cancelable operating…

A: Average lease payment per year = Total lease payment / Term of lease = P1,500,000 / 5 years =…

Q: On May 1, 2019, Al-Quds Co, purchased a trademark with a cost of $120000, The trademark is…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: On January 1, 2021, an impairment test was conducted by Radyowap Co. on its Radio Equipment which…

A: Impairment loss = Carrying amount - Recoverable amount  Recoverable amount is the higher of value in…

Q: On December 31, 2019, Aquinas Company had equipment that had a carrying amount of $300,000 which the…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: The R Company acquired an equipment on January 1, 2016 at a cost of P900,000, depreciating it over 8…

A: Working Note :- Particulars Amount P Amount P Cost of equipment Jan 1 ,…

Q: MABC Company reported an impairment loss of P2,000,000 in 2020. This loss was related to an item of…

A: Impairment loss: A reduction in net carrying value (acquisition cost minus depreciation) of an asset…