27. On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on ananalysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December31, 2022 are:Cash4,000,000Accounts receivable6,000,000Allowance for doubtful accounts1,000,000InventoryProperty, plant and equipmentAccumulated depreciation7,000,00022,000,0004,000,000Goodwill3,000,0002,000,000Accounts payableLoans payableThe entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable areconsidered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair valueless cost of disposal. What is the impairment loss to be allocated to property, plant and equipment?А. 3,600,0001,000,000В. 6,000,000С. 3,000,000D. 1,800,000

Impairment Loss: When the carrying value of an asset or cash-generating unit exceeds the recoverable…

27. On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 Accounts receivable 6,000,000 Allowance for doubtful accounts 1,000,000 7,000,000 Inventory Property, plant and equipment Accumulated depreciation 22,000,000 4,000,000 3,000,000 Goodwill Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? А. 3,600,000 В. 6,000,000 С. 3,000,000 2,000,000 1,000,000 D. 1,800,000

27. On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 Accounts receivable 6,000,000 Allowance for doubtful accounts 1,000,000 7,000,000 Inventory Property, plant and equipment Accumulated depreciation 22,000,000 4,000,000 3,000,000 Goodwill Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? А. 3,600,000 В. 6,000,000 С. 3,000,000 2,000,000 1,000,000 D. 1,800,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Presented below is information related to Wolfie Corp.’s equipment on 12/31/2022: Description Amount Capitalized cost $900,000 Accumulated depreciation to date 750,000 Estimated residual value 40,000 Expected future cash flows 125,000 Estimated Fair value 100,000 The amount of the impairment loss, if any, that Wolfie Corp. should record on 12/31/22 is: $45,000 $50,000 $10,000 $20,000 $25,000 There is no impairment.
Computing the cash effect Rouse Exercise Equipment, Inc. reported the following financial statements for 2018: Requirements Compute the amount of Rouse Exercises acquisition of plant assets. Assume the acquisition was for cash. Rouse Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $47,900. No cash was received upon disposal. Compute new borrowing or payment of long-term notes payable, with Rouse Exercise having only one long-term notes payable transaction during the year. Compute the issuance of common stock with Rouse Exercise having only one common stock transaction during the year. Compute the payment of cash dividends.
Presented below is information related to equipment owned by Nash Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value (a) $6,270,000 Date Assume that Nash will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 4 years and no salvage value. Your answer is partially correct. 750,000 December 4,810,000 3,320,000 Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (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 Debit Credit E
View the balance sheet and cash flows, and write a 100 word minimum analysis in complete sentences. Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Net Income $690,000 -$870,000 -$976,000 -$1,962,000 Cash Flows-Operating Activities Depreciation $2,502,000 $2,342,000 $2,060,000 $1,727,000 Net Income Adjustments $2,395,000 $1,187,000 $1,043,000 $950,000 Changes in Operating Activities Accounts Receivable -$652,000 -$367,000 -$497,000 -$25,000 Changes in Inventories -$422,000 -$429,000 -$1,023,000 -$179,000 Other Operating Activities -$1,667,000 -$937,000 -$504,000 -$1,610,000 Liabilities $2,925,000 $1,384,000 $2,082,000 $1,317,000 Net Cash Flow-Operating $5,943,000 $2,405,000 $2,098,000 -$61,000 Cash Flows-Investing Activities Capital Expenditures -$3,232,000 -$1,432,000 -$2,319,000 -$4,081,000 Investments -- -- -- -- Other Investing Activities $100,000 -$4,000 -$18,000 -$115,000 Net Cash Flows-Investing -$3,132,000…
A company reported net income of $180000 for the year ended December 31, 2025. During the year, inventories decreased by $36000, accounts payable decreased by $54000, depreciation expense was $40500 and a gain on disposal of equipment of $13500 was recorded. Net cash provided by operating activities in 2025 using the indirect method was O $189000. O $220500. O $216000. O $252000.
Lindsay Corporation had net income for 2021 of $3,000,000. Additional information is as follows: Depreciation of plant assets Amortization of intangibles Increase in accounts receivable Increase in accounts payable $1,200,000 240,000 420,000 540,000 Lindsay's net cash provided by operating activities for 2021 was $2,680,000. $4,440,000. $4,320,000. $4,560,000.
Vaughn Company reported net income of $112000 for the year ended December 31, 2020. During the year, inventories decreased by $14600, accounts payable decreased by $20500, depreciation expense was $17800 and a gain on disposal of equipment of $9500 was recorded. Net cash provided by operating activities in 2020 using the indirect method was O $123900. O $105900. O $126600. O $114400.
The net income for Crane Co. for 2022 was $305,000. For 2022, depreciation on plant assets was $65,200, and the company incurred a loss on disposal of plant assets of $27,600. Compute net cash provided by operating activities under the indirect method, assuming there were no other changes in the company's accounts. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities Net Income Crane Co. Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2022 Adjustments to reconcile net income to Depreciation Expense Loss on Disposal of Plant Assets v $ 65200 27,600 $ $ 305000 397800
42.During 2018, a team was sold for $ 39,000. The equipment had originally been purchased for $ 64,000 and had a book value of $ 36,000 at the time of sale. The balance of the Accumulated Depreciation account as of December 31, 2017 was $ 172,000 and as of December 31, 2018 it was $ 184,000. Determine the depreciation adjustment to be made to net income if the Indirect Method is used to report operating activities in the Statement of Cash Flows. Select one: a. $ 40,000. b. $ 76,000. c. $ 48,000. d. $ 28,000.
Alpha Computers reports net income of $45 million. Included in that number is depreciation expense of $8 million, and a loss on the sale of land of $1 million. Records reveal decreases in Accounts Receivable, Inventory, and Accounts Payable of $5 million, $3 million, and $1 million, respectively. Calculate Alpha Computers' net cash flows from operating activities using the indirect method. (Negative value should be indicated by minus sign. Enter your answer in millions.) Net cash flows from operating activities million
At December 31, 2022, Flounder Company reported the following as plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets April 1 May 1 June 1 $27,650,000 13,740,000 During 2023, the following selected cash transactions occurred. July 1 Dec. 31 48,010,000 4,600,000 $3,590,000 13,910,000 43,410,000 $60,910,000 Purchased land for $2,170,000. Sold equipment that cost $1,080,000 when purchased on January 1, 2019. The equipment was sold for $648,000. Sold land purchased on June 1, 2013 for $1,410,000. The land cost $402,000. Purchased equipment for $2,370,000. Retired equipment that cost $503,000 when purchased on December 31, 2013.
Renzo Company reported net income of $196,600 for 2020. Renzo also reported depreciation expense of $43,700 and a loss of $4,900 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $11,600 for the year, a $13,600 Increase in accounts payable, and a $3,000 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method.