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

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

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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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 P102,857
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.
Madison Company acquired equipment on January 2, Year 1, at a cost of $20 million. The equipment has a five-year life, no residual value, and is depreciated on a straight-line basis. On January 2, Year 4, Jefferson Company determines the fair value of the asset (net of any accumulated depreciation) to be $12 million. Assuming that (1) the revaluation model is used for measurement subsequent to initial recognition under IFRS and (2) US GAAP: Depreciation expense for Year 4 will be: Select one:a. US GAAP: 2000,000 IFRS 4,000,000b. US GAAP: 4000,000 IFRS 6,000,000c. US GAAP: 4000,000 IFRS 4,000,000d. US GAAP: 2000,000 IFRS 2,000,000
Asanco Corporation acquired and placed in service the following assets during the year: Asset Date Acquired Cost Basis Building 12/4 $350,000 Computer Equipment 3/2 $40,000 Furniture 4/15 $38,000 Assume that Asanco does not elect §179 expensing and elects not to use bonus depreciation. Answer the following questions. What is Asanco’s first year cost recovery for each asset? Use the format below. Asset Acquisition Date Quarter Recovery Period Original Basis Rate Depreciation Expense What is Asanco’s year 3 cost recovery for each asset if it sells all of these assets on January 10th of year 3? Use the format below. Asset Original Basis Recovery Period Rate Portion of Year Depreciation Expense
As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $46,000 (cost of $62,000; accumulated depreciation of $16,000) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $38,600 and its fair value less costs of disposal (of $2,100) is $41,200. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $44,100. (a1) Compare the accounting for impairment of the equipment under IFRS versus ASPE IFRS Impairment loss ASPE
Factor Company's cash generating unit has been assessed for impairment 3 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 P102.857
Wildhorse, Inc. purchased equipment in 2024 for $901000. Two years later it became apparent to Wildhorse that this equipment had suffered an impairment of value. In early 2026, the book value of the asset is $585000 and it is estimated that the fair value is now only $359000. The entry to record the loss on impairment is O No entry is necessary as a write-off violates the historical cost principle. Retained Earnings 226000 Reserve for Loss on Impairment. Loss on Impairment Accumulated Depreciation-Equipment Retained Earnings Accumulated Depreciation-Equipment 226000 226000 226000 226000 226000
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Apollo Company, a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Stande, emerged as a candidate for possible goodwill impairment. Stande had recognized net assets with carrying amounts totaling $1,043, including goodwill of $615. Stande’s reporting unit fair value is assessed at $990 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $165 and $145, respectively). The following table summarizes current financial information for the Stande reporting unit: Items Carrying Amounts Fair Values Tangible assets, net $ 118 $ 178 Recognized intangible assets, net 310 353 Goodwill 615 ? Unrecognized intangible assets 0 310 Required: Determine the amount of any goodwill impairment for Apollo’s Stande reporting unit. After recognition of any goodwill impairment loss, what are the reported carrying…
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