INTERNATIONAL ACCOUNTING LOOSELEAF
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ISBN: 9781264030569
Author: Doupnik
Publisher: MCG
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Chapter 4, Problem 34EP
1.
To determine
Complete the table to calculate carrying amount at 12/31/Y5 for the assets of Division R.
2.
To determine
Complete the table to calculate carrying amount at 12/31/Y6 for the assets of Division R.
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Using the following information, compute cash paid to purchase property, plant, and equipment.
Depreciation expense ................................ .....................................$13，000
End of Year Begnning of Year
Property，plant and Equipment.... .............. $ 134,000 $ 124,000
Accumulated depreciation ................................ 32,000 41,000
During the year, property, plant, and equipment with an original cost of $28,000 was sold for a gain of $6,500.
Compute the amount of cash received from the sale of the property, plant, and equipment.
At December 31, 2022, Whispering Winds Company reported the following as plant assets.
Land- $3,500,000
Buildings- $27,000,000
Less: Accumulated deprecation- buildings 10,000,000 17,000,000
Equipment 47,000,000
Less: Accumulated depreciation- equipment 4,500,000 42,500,000
Total plant assets $63,000,000
During 2023, the following selected cash transactions occurred.
April 1- Purchased land for $2,000,000
May 1- Sold equipment that cost $600,000 when purchased on January 1, 2019. The equipment was sold for $360,000.
June 1- Sold land purchased on June 1, 2013 for $1,410,000. The land costs $391,000.
July 1- Purchased equipment for $2,300,000.
Dec. 31- Retired equipment that cost $471,000 when purchased on December 31, 2013.
A.) Journalize the above transactions. The company uses straight-line deprecation for buildings and equipment. The buildings are estimated to have 50-year life and no salvage value. The equipment is estimated to have a 10-year useful life and no salvage value.…
The 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.
Chapter 4 Solutions
INTERNATIONAL ACCOUNTING LOOSELEAF
Ch. 4 - Prob. 1QCh. 4 - How do IFRS and U.S. GAAP differ in their approach...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Where in the food products value chain are...
Ch. 4 - Prob. 11QCh. 4 - Prob. 12QCh. 4 - Prob. 13QCh. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - Prob. 16QCh. 4 - Prob. 17QCh. 4 - Prob. 18QCh. 4 - Prob. 19QCh. 4 - Prob. 20QCh. 4 - Prob. 21QCh. 4 - How does the two-step model traditionally used for...Ch. 4 - How are borrowing costs accounted for under IFRS?Ch. 4 - Prob. 24QCh. 4 - 1. A company incurred the following costs related...Ch. 4 - 2. A company determined the following values for...Ch. 4 - Prob. 3EPCh. 4 - 4. On January 1, Year 1, an entity acquires a new...Ch. 4 - Prob. 5EPCh. 4 - 6. Under IFRS, an entity that acquires an...Ch. 4 - Prob. 7EPCh. 4 - Prob. 8EPCh. 4 - Prob. 9EPCh. 4 - Prob. 10EPCh. 4 - Prob. 11EPCh. 4 - Changsha Corporation purchased an asset during the...Ch. 4 - Prob. 13EPCh. 4 - Prob. 14EPCh. 4 - In the fourth quarter of Year 1, Beech Corporation...Ch. 4 - 16. This is a continuation of problem 15. At...Ch. 4 - 17. Steffen-Zweig Company exchanges two used...Ch. 4 - 18. Stevenson Corporation acquires a one-year-old...Ch. 4 - 19. Quick Company acquired a piece of equipment in...Ch. 4 - Prob. 20EPCh. 4 - 21. Jefferson Company acquired equipment on...Ch. 4 - 22. Madison Company acquired a depreciable asset...Ch. 4 - 29. Stratosphere Company acquires its only...Ch. 4 - QualCore Company began operations on January 1,...Ch. 4 - 26. Buch Corporation purchased Machine Z at the...Ch. 4 - Prob. 26EPCh. 4 - Prob. 27EPCh. 4 - Prob. 28EPCh. 4 - Prob. 29EPCh. 4 - Prob. 31EPCh. 4 - Prob. 33EPCh. 4 - Prob. 34EPCh. 4 - Prob. 35EPCh. 4 - Prob. 36EPCh. 4 - Prob. 37EP
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