1)
Introduction: Book value represents the total worth of a company's assets that shareholders would receive if the company were to be liquidated.
The book value of plant and equipment and Patent
2)
Introduction: Regular asset impairment testing is necessary to avoid overstating assets on the
Point at which plant and equipment should be tested for impairment.
3)
Introduction: Regular asset impairment testing is necessary to avoid overstating assets on the balance sheet. When an asset's fair value is lower than its carrying value on the balance sheet, impairment has occurred.
Point at which
4)
Introduction: The assets of the business entities are said to be when their fair market value declines more than their book value on the company's financial statements.
The amount of Impairment loss
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ACNT 1371 PRINT UPGRADE
- Compute for the carrying value of the intangible assets at December 31, 2019.arrow_forwardIn its December 31, 2020, statement of financial position, what amount should Maelet report as an intangible asset-franchisearrow_forwardBrush Company engaged in the following transactions at the beginning of 2019: 1. Prepare the journal entries to record the preceding transactions. 2. Prepare the journal entries to record the amortization of intangible assets for 2019, if appropriate. Amortize over the legal life unless a better alternative is indicated.arrow_forward
- On December 31, 2022, Belt Enterprises must measure its impairment loss for plant and equipment. Belt has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: EEE (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or parentheses for any loss amounts.) Plant and Equipment Less: Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then credits. Exclude explanations from any jo December 31, 2022 Account Determine the revised annual depreciation expense. The annual depreciation expense is Data table Cost Less: Accumulated Depreciation/Amortization Carrying value…arrow_forwardHelp me to answer this with supporting computation: requirement 1: What is the impairment loss to be recognized for 2020? Requirement 2: How much will be the depreciation expense for the year ended December 31, 2021?arrow_forwardOn December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment. Delater has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or par Plant and Equipment Carrying value Less: Fair value Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then c December 31, 2022 2,145,000 915,000 $ (2,145,000) 1,230,000 $ (915,000) Account Accumulated Depreciation Plant and Equipment Impairment Loss on Plant and Equipment Plant and Equipment Determine the revised annual depreciation…arrow_forward
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