The equipment has carrying amount of 140,000 and recoverable amount of $110,000 as at year end date. What is the impairment loss?
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The equipment has carrying amount of 140,000 and recoverable amount of $110,000 as at year end date. What is the impairment loss?
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- How are intangible assets with an indefinite life treated? A. They are depreciated. B. They are amortized. C. They are depleted. D. They are tested yearly for impairment.Factor Company’s cash generating unit has been assessed for impairment and it has been determined that the unit has incurred an impairment loss of P240,000. The carrying amounts of the assets were as follows: Building P6,000,000; Land P3,500,000; Equipment P2,000,000; Vehicles P2,500,000. The cash generating unit has not recorded goodwill. How much of impairment loss should be allocated to the building? * P50,000 P62,500 P87,500 P102,857Law Co. reported the following calculation relating to an impairment loss suffered on December 31, 2021: Goodwill Other assets 3,000,000 (3,000,000) 0 Carrying amount Impairment loss Adjusted carrying amount 9,000,000 (2,000,000) 7,000,000 There has been a favorable change in the estimate of the recoverable amount of the net assets. The recoverable amount is now P8,000,000 on December 31, 2022. The "Other assets" are depreciated at 20% of reducing balance. Required: 1. How much is the carrying amount of the "Other assets" on December 31, 2022 had there been no impairment? 2. What amount of gain on reversal of impairment should be recognized in 2022? 3. What amount of the gain on reversal of impairment is applied to goodwill? +
- An 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?An asset's carrying amount is OMR 50,000. Its fair value OMR 40,000 and costs of disposal is OMR 3000 and its value in use is OMR 36,000. There is an impairment loss of: a- OMR 13,000 b- No impairment loss c- OMR 14,000 d- OMR 10,000Cake Company reported an impairment loss of P784,000 in its income statement for the year 2020. This loss was related to a building that was acquired on January 1, 2010 with a cost of P6,000,000 (no residual value). Depreciation on the building is computed on a straight-line basis and annual depreciation on cost is P240,000. As a result of the building's impairment, depreciation for the year 2021 was revised based on the asset's recoverable amount at December 31, 2020. On December 31, 2023, after recording the depreciation for the year, the entity decided to measure its building using revaluation model. At that time, there were evidences of recovery in the building value owing to the flourishing business in Cake Company's location. The building was then appraised at a fair value of P2,800,000. What is the amount of gain on impairment recovery that Cake Company should report in its 2023 income statement and the amount of revaluation surplus reported in equity at December 31, 2023,…
- The cost of the office equipment is P12,000. It has an estimated useful life of 5 years with a salvage value of P2,000. The entry to record the depreciation expense is:For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. Residual Service Life Depreciation Depreciation Asset Cost Value (Years) Method (Year 2) A $28,000 5 DDB $24,000 B 56,000 8 SL 5,300 C 81,000 6,000 SL 5,000 D 246,000 18,000 10 22,800 E 208,000 28,000 8 DDBPresented below is information related to equipment owned by Sheridan Company at December 31, 2020. Cost $9,630,000 Accumulated depreciation to date 1,070,000 Expected future net cash flows 7,490,000 Fair value 5,136,000 Assume that Sheridan will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (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.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the transaction on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2017 enter a debit amount enter a credit amount…
- The cost of asset is $100,000 and the salvage value at the end of its useful lifeof 8 years is $7,500. Compute depreciation under the following methods(a) Straight Line Depreciation(b) Double Declining MethodPresented below is information related to equipment owned by Metlock Company at December 31, 2020. Cost $9,900,000 Accumulated depreciation to date 1,100,000 Expected future net cash flows 7,700,000 Fair value 5,280,000 Assume that Metlock will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (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.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the transaction on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31,…The asset's book value is $70,000 on January 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during Year 3 would be: