Staton Corporation's balance sheet includes Equipment recorded at a cost of $110,000 and accumulated depreciation of 20,000. After performing its annual review for impairment, Staton determined the following: Asset value in use $69,000 Fair value less selling costs 67,000 Undiscounted cash flows... 89,000 a Assuming Staton uses the rational entity impairment model record the appropriate entries. b Assuming Staton uses the cost recovery model calculate the impairment if any.

Bravo Ltd classified one of its buildings as a non-current asset held for sale. This building was measured at cost less accumulated depreciation. It is currently carried at fair value less costs to sell of 150,000. At year end the fair value less costs to sell was 155,500 impairment losses previously recognized unde IAS36 impairment of assets are 1,500 and under IFRS5 1,500 how much of the impairment loss can be reserved

In accordance with IAS 36 Impairment of Assets, which of the following statements are true?   Non-current assets must be checked annually for indications of impairment An impairment loss must be recognized immediately in the income statement, except that all or part of a loss on a previously revalued asset should be charged against any related revaluation surplus If the fair value less costs to sell exceeds the carrying amount of an asset, there is no need to estimate value in use   A         (1) and (2) B          (1) and (3) C         (2) and (3) D         (1), (2) and (3)

Presented below is information related to equipment owned by Davis Company at December 31, 2020. Cost Accumulated Depreciation to date Expected future net cash flows (undiscounted) Fair value $7,750,000 750,000 Instructions: 6,250,000 6,600,000 Assume that Davis intends to dispose of the asset in the coming year. It is expected the cost of disposal will be $15,000. As of December 31, 2020, the equipment has a remaining useful life of 5 years. 1. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. 2. Prepare the iournal entry to record depreciation expense for

Martinez Company owns equipment that cost $1,053,000 and has accumulated depreciation of $444,600. The expected future net cash flows from the use of the asset are expected to be $585,000. The fair value of the equipment is $468,000.Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Windsor Company owns equipment that cost $972,000 and has accumulated depreciation of $410,400. The expected future net cash flows from the use of the asset are expected to be $540,000. The fair value of the equipment is $432,000.Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title   enter a debit amount   enter a credit amount   enter an account title   enter a debit amount   enter a credit amount

Shamrock Inc. owns equipment that cost $470,000 and has accumulated depreciation of $122,000. The expected future net cash flows from the use of the asset are expected to be $311,000. The fair value of the equipment is $269,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

. Last year, Wyeth Company recorded an impairment on an asset held for use. Recent appraisals indicate that the asset has increased in value. Should Wyeth record this recovery in value under GAAP?

A company has seven assets (labelled 1 to 7) for which there are indications of possible impairment. The carrying amount, fair value less costs of disposal and value in use for each asset are as shown below.     Carrying Amount Fair Value less costs of disposal Value in use   $ $ $ Asset 1 25,000 30,000 45,000 Asset 2 27,500 22,500 32,500 Asset 3 17,500 28,750 n/d Asset 4 21,250 16,250 17,500 Asset 5 31,875 n/d 42,000 Asset 6 25,000 35,000 30,000 Asset 7 52,500 37,500 25,000   Note: n/d = not determined  Required: a.       Calculate the amount of any impairment loss arising in relation to each asset.           (Show Recoverable Amount) b.      Briefly describe how impairment loss is determined. c.       Briefly explain how you determined if there was an impairment loss for assets 4 and 6.