Bundle: Managerial Accounting, 15th + Cengagenowv2, 1 Term Printed Access Card
15th Edition
ISBN: 9781337955386
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 15, Problem 8DQ
Fully
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Fully depreciated equipment costing $60,000 was discarded, with no salvage value. What effect would this have on the statement of cash flows?
5. During the end of the year, YGX Company presented the following
information:
Equipment
Accumulated depreciation
However, the equipment is found to be impaired due to obsolescence
as well as physical damage. At year-end, the company has determined
the following information related to the equipment:
Undiscounted net cash inflows
Fair value less cost of disposal
Value in use or discounted net cash inflows
a. 1,500,000
b. 2,000,000
9,000,000
3,500,000
What amount should be reported as impairment loss for the year?
c. 500,000
d. 0
4,500,000
3,500,000
3,000,000
Sarasota Co. has equipment that cost $75,700 and that has been depreciated $49,800.
Record the disposal under the following assumptions.
(a)
(b)
(c)
It was discarded with no cash received.
It was sold for $22,200.
It was sold for $27,200.
Chapter 15 Solutions
Bundle: Managerial Accounting, 15th + Cengagenowv2, 1 Term Printed Access Card
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Fully depreciated equipment costing 50,000 was...Ch. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 1BECh. 15 - Prob. 2BECh. 15 - Prob. 3BECh. 15 - Prob. 4BECh. 15 - Land transactions on the statement of cash flows...Ch. 15 - Prob. 6BECh. 15 - Prob. 7BECh. 15 - Prob. 8BECh. 15 - Prob. 9BECh. 15 - Prob. 1ECh. 15 - Effect of transactions on cash flows State the...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Reporting changes in equipment on statement of...Ch. 15 - Reporting changes in equipment on statement of...Ch. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 16ECh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 18ECh. 15 - Prob. 19ECh. 15 - Prob. 20ECh. 15 - Prob. 21ECh. 15 - Prob. 22ECh. 15 - Prob. 1PACh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1PBCh. 15 - Prob. 2PBCh. 15 - Prob. 3PBCh. 15 - Statement of cash flowsdirect method The...Ch. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1MADCh. 15 - Prob. 2MADCh. 15 - Prob. 3MADCh. 15 - Prob. 4MADCh. 15 - Prob. 5MADCh. 15 - Prob. 1TIFCh. 15 - Financial condition Tidewater Inc., a retailer,...Ch. 15 - Prob. 4TIF
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- One of the machines of SKEWER PIERCE Co. has suffered physical damage but is still working, although not as well as before it was damaged. The machine does not generate independent cash inflows. The smallest identifiable group of assets that includes the machine and generates cash inflows that are largely independent of the cash inflows from other assets is the production line to which the machine belongs. Information on the machine and the production line is shown below: Carrying amount of machine ₱ 800,000 Fair value less costs of disposal of machine 600,000 Carrying amount of production line 32,000,000 Recoverable amount of production line 36,000,000 Thebudgets/forecasts approved by management reflect no commitment of management to replace the machine. How much is the impairment loss? Please provide solutions. a. 4,000,000 b. 200,000 c. 3,800,000 d. 0arrow_forwardKruse Nonprofit has the following activity related to its property, plant, and equipment (PP&E) accounts, net of accumulated deprecation. There were no sales of PP&E during the year. Beginning balance = $172,000 Ending balance = $248,000 Depreciation = $24,000 Show which sections of the statement of cash flows (using the indirect method) will be affected, in what direction, and by how much for all PP&E activity.arrow_forwardAn asset group is being evaluated for an impairment loss. The following financial information is available for the asset group: Carrying Value=100,000,000 Sum of the undiscounted cash flows= 95,000,000 Fair value= 80,000,000 Carrying Value= $100,000,000 What is the value of the impairment loss?arrow_forward
- Romanova Inc. decides to sell an old piece of equipment and receives $5,000 cash for it. The original cost of the equipment was $50,000 and it had accumulated depreciation of $47,000 associated with it. Which of the following items would be increased by the sale of the old equipment? (check all that apply) Cash from Operating Activities Total Assets Net Income Gain on Sale Cash from Investing Activitiesarrow_forwardEquipment acquired at a cost of $126,000 has a book value of $42,000. a. The equipment had no market value and was discarded. b. The equipment is sold for $54,000. c. The equipment is sold for $24,000. Journalize the disposal of the equipment under the assumptions listed above. If an amount box does not require an entry, leave it blank. a. b. Accumulated Depreciation - Equipment Cash Depreciation Expense - Equipment Equipment Gain on Sale of Equipmentarrow_forward7. A company purchased a POS cash register on January 1 for RM5,400. This register has a useful life of 10 years and a salvage value of RM400. What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method? a. RM864 b. RM812 c. RM800 d. RM755 8. Which of the following is NOT an activity listed in the statement of cash flows? a. Investing Activities b. Financing Activities c. Operating Activities d. Funding Activities 9. Which of the following is an example of a deferral? a. Accruing year-end wages b. Recording prepaid rent c. Recognizing revenues earned but not yet recorded d. Recognizing expenses incurred but not yet recorded 10. Deciding whether to record a sale when the order for services is received or when the services are performed is an example of a a. recognition b. valuation issue. c. classification d. communicationarrow_forward
- a. The loss on the cash sale of equipment was $5125(details in b). b.Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. The Statement of cash flows is not complete can you please fill in the blanks and correct the two marked wrong? thank you c. Purchased equipment costing $96,375 By paying $30,000 cash and signing a lon-term notes payable for the balance. d. Paid $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100.arrow_forwardTamarisk, Inc. has equipment that cost $79,900 and that has been depreciated $50,500. Record the disposal under the following assumptions. (a) (b) (c) It was discarded with no cash received. It was sold for $23,800. It was sold for $32,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation (a) Debit Creditarrow_forwardOn July 1, 2021. A exchanged its non-monetary asset (equipment) with B's non-monetary asset (machinery). The following data were made available: A: Equipment P4,400,000 Accumulated depreciation P2,000,000 Cash received from B 500,000 B: Machinery P3,700,000 Accumulated depreciation 1,800,000 Cash paid to A 500,000 The transaction lacks commercial substance. How much is cost of the new asset of A?arrow_forward
- 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 impairment loss allocated to Machinery and Equipment is? (do not round off the percentage, round off your final answer to the nearest peso)arrow_forwardThe company provided the data of PP&E in a cash-generating unit (CGU) as follows: Cost Accumulated Depreciation Equipment A $ 15,000 $ 8,000 Equipment B 30,000 19,000 Equipment C 45,000 23,000 The unit’s fair value less costs to sell was $25,000. The unit’s future cash flows was $32,000, and its present value was $28,000. The company adopted IFRS. Prepare journal entries to record impairment. If the recoverable amount of Equipment C is $19,000, prepare journal entries to record impairment. If the recoverable amount of Equipment C is $24,000, prepare journal entries to record impairment.arrow_forwardINSTIGATE PROVOKE Co. determined that one of its cash-generating units is impaired. Information on the assets of the CGU is shown below: Assets Carrying amount Inventory 800,000 Investment property (at cost model) 1,600,000 Building 2,400,000 Goodwill 1,200,000 6,000,000 It was estimated that the value in use of the CGU is ₱3,600,000 and its fair value less costs of disposal is ₱2,400,000. How much is the impairment loss? a. 4,200,000 b. 3,200,000 c. 2,400,000 d. 2,000,000 2.How much is the carrying amount of the building after the impairment testing? a. 1,680,000 b. 1,120,000 c. 1,860,000 d. 2,040,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Property, Plant and Equipment (PP&E) - Introduction to PPE; Author: Gleim Accounting;https://www.youtube.com/watch?v=e_Hx-e-h9M4;License: Standard Youtube License