Assume that Legoland needs to depreciate one of its Roller Coasters. The Roller Coaster was bought on 12/31/2017. All the costs that made the Roller Coaster ready for use are $1,100,000. Assume its useful life is 5 years. Assume the salvage value is $100,000. Because of COVID 19. very few guests went to Legoland in 2020. At the end of the year 2020, the financial manager of Legoland estimated that the pandemic would not be over until the end of 2022. She estimated that the sum of expected future net cash flows of this Roller Coaster was $350,000 and its fair value was $300,000. Assuming that LEGOLAND uses the double declining balance (DDB) method to depreciate this roller coaster, which of the following answer about impairment is correct for year 2020? No impairment. O Impairment is confirmed: impairment loss is 112,400 O Impairment is confirmed; impairment loss is 62.400 O Impairment is confirmed; impairment loss is 150,000 O None of the above

Assume that Legoland needs to depreciate one of its Roller Coasters. The Roller Coaster was bought on 12/31/2017. All the costs that made the Roller Coaster ready for use are $1,100,000. Assume its useful life is 5 years. Assume the salvage value is $100,000. Because of COVID 19. very few guests went to Legoland in 2020. At the end of the year 2020, the financial manager of Legoland estimated that the pandemic would not be over until the end of 2022. She estimated that the sum of expected future net cash flows of this Roller Coaster was $350,000 and its fair value was $300,000. Assuming that LEGOLAND uses the double declining balance (DDB) method to depreciate this roller coaster, which of the following answer about impairment is correct for year 2020? No impairment. O Impairment is confirmed: impairment loss is 112,400 O Impairment is confirmed; impairment loss is 62.400 O Impairment is confirmed; impairment loss is 150,000 O None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How do I do number 2 ?
Define APR
Hi can you explain transaction F.
What is cpj
Activity 3.5.2.
Problem 9-25 Fudge factors An oil company executive is considering investing $10.1 million in one or both of two wells: well 1 is expected to produce oil worth $3.01 million a year for 10 years; well 2 is expected to produce $2.01 million for 15 years. These are real (inflation-adjusted) cash flows. The beta for producing wells is 0.91. The market risk premium is 9%, the nominal risk-free interest rate is 7%, and expected inflation is 3%. The two wells are intended to develop a previously discovered oil field. Unfortunately there is still a 21% chance of a dry hole in each case. A dry hole means zero cash flows and a complete loss of the $10.1 million investment. Ignore taxes and make further assumptions as necessary. a. What is the correct real discount rate for cash flows from developed wells? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Real discount rate b. The oil company executive proposes to add 20 percentage points to the…
Please answer G part with explanation
A. For what values of x is f(x) NOT y 00 6 4 2 X -3-2-10 1 2 3 4 5
Answer Question 4
What about requirement 4+5
4+1?
can you answer d