18. The property, plant and equipment account of Toy Shop Manila was revisited by its property officers. They discovered that due to obsolescence, machineries with a total historical cost of P2,100,000 and accumulated depreciation of P1,750,000, will no longer provide economic benefits to the company wither from its disposal or use. Which of the following will be included in the journal entries to record the derecognition of these machineries? A. credit Accumulated Depreciation, P1,750,000 B. credit Loss from Derecognition, P350,000 C. credit Machineries, P350,000 D. credit Machineries, P2,100,000
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18. The property, plant and equipment account of Toy Shop Manila was revisited by its property officers. They discovered that due to obsolescence, machineries with a total historical cost of P2,100,000 and
Which of the following will be included in the
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- The property, plant and equipment account of Cuddle PH was revisited by its property officers. They discovered that due to obsolescence, machineries with a total historical cost of P2,100,000 and accumulated depreciation of P1,750,000, will no longer provide economic benefits to the company wither from its disposal or use.Which of the following will be included in the journal entries to record the derecognition of these machineries? A. credit Accumulated Depreciation, P1,750,000 B. credit Machineries, P350,000 C. credit Loss from Derecognition, P350,000 D. credit Machineries, P2,100,000Company management decided to discard a machine. The machine cost $ 125,000, had accumulated depreciation of $ 125,000, and was scrapped as junk. The machine was depreciated on a straight-line basis, with a useful life of 5 years, and a $10,000 salvage value. What journal entry is required to record the disposal of this machine?18. The sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale were a. less than current market value. b. greater than cost. c. greater than book value. d. less than book value. 19. Dewey Company purchased a machine that was installed and placed in service on January 2, 2001, at a total cost of $480,000. Residual value was estimated at $80,000. The machine is being depreciated over ten years by the double-declining-balance method. For the year 2002, Dewey should record depreciation expense of a. $64,000. b. $76,800. c. $80,000. d. $96,000. 20. On February 12, Laker Company purchased a tract of land as a factory site for $175,000. An existing building on the property was razed and construction was begun on a new factory building in March of the same year. Additional data are available as follows: Cost of razing old building .......................... $ 35,000 Title…
- * Your answer is incorrect. Bramble Company owns equipment that cost $1,026,000 and has accumulated depreciation of $433,200. The expected future net cash flows from the use of the asset are expected to be $620,000. The fair value of the equipment is $456,000. 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. List debit entry before credit entry.) Account Titles and Explanation Accumulated Depreciation - Equipment Loss on Impairment eTextbook and Media List of Accounts Debit 592800 0 Credit 0 592800The company controller, Barry Melrose, has asked for your help in interpreting the authoritative accounting literature that addresses the recognition and measurement of impairment losses for property, plant, and equipment andintangible assets. “We have a significant amount of goodwill on our books from last year’s acquisition of Churchill Corporation. Also, I think we may have a problem with the assets of some of our factories out West. And oneof our divisions is currently considering disposing of a large group of depreciable assets.”Your task as assistant controller is to research the issue.Required:1. Obtain the relevant authoritative literature on accounting for the impairment of property, plant, and equipment and intangible assets using the FASB Accounting Standards Codification. You might gain access at theFASB website (www.fasb.org). Cite the reference locations regarding impairment of property, plant, andequipment and intangible assets.2. When should property, plant, and…! Required information [The following information applies to the questions displayed below.] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $530,000. The ovens originally cost $723,000, had an estimated service life of 10 years, had an estimated residual value of $43,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. Determine the financial statement effects of the sale of the ovens at the end of the second year. Note: Amounts to be deducted should be indicated by a minus sign.
- During the current accounting period, Jack Ltd considered the recognition of the following costs as intangible assets. GHS 40,000 spent on evaluating research findings GHS 60,000 spent on acquiring a brand name from a competitor GHS 50,000 spent on acquiring the legal rights to a production process, without which Jack Ltd’s business cannot function In accordance with IAS 38 Intangible Assets, what is the maximum amount that Jack Ltd could recognize as intangible assets?A copy machine costs $45,000 when new and has accumulated depreciation of $44,000. Suppose Print and Photo Center junks this machine and receives nothing. What is the result of the disposal transaction? a. No gain or loss b. Gain of $1,000 c. Loss of $1,000 d. Loss of $45,0004. Which of the following situations would not be permitted to defer the recognition of any recapture that might arise from the disposition of an asset? A building that was used for income earning purposes was destroyed in a flood. Insurance proceeds were received which generated recapture. A new building was built 18 months later. B A piece of equipment that belonged to a company was stolen in November 2019. Insurance proceeds were received which generated recapture. The equipment was replaced in December of 2020. A piece of equipment that belonged to a construction company was sold in June 2019. The proceeds from the sale generated recapture. A new piece of equipment was purchased in January of 2020. The company's fiscal year-end is December 31st. D. A building that was used for income earning purposes was sold in December 2019. The proceeds from the sale generated recapture. A new building was purchased in April 2020. The company's fiscal year-end is December 31st. none of the above
- Required information [The following information applies to the questions displayed below.] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $520,000. The ovens originally cost $712,000, had an estimated service life of 10 years, had an estimated residual value of $42,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. 4. Determine the financial statement effects of the sale of the ovens at the end of the second year. Note: Amounts to be deducted should be indicated by a minus sign. Assets Balance Sheet Liabilities Stockholders' Equity Common Retained Stock Earnings Revenues Income Statement Expenses Net IncomeThe Cello Co. is considering whether according to IAS 36 - 'Impairment of Assets', any impairment loss has occurred on its major factory in the Sohar industrial area. Current carrying value (i.e. cost less accumulated depreciation), OMR 80m. Value in use, OMR 120m and Fair value less cost of disposal, OMR 60m. What is the amount of the impairment loss to be recognized? O a. Impairment loss: Nil. O b. Impairment loss: OMR 20,000. O c Impairment loss: OMR 60,000. O d. Impairment loss: OMR 40,000.New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $700,000. The ovens originally cost $910,000, had an estimated service life of 10 years, had an estimated residual value of $60,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. Required: 1. Calculate the balance in the Accumulated Depreciation account at the end of the second year. 2. Calculate the book value of the ovens at the end of the second year.3. What is the gain or loss on the sale of the ovens at the end of the second year? 4. Record the sale of the ovens at the end of the second year.