Concord Corporation bought a machine on January 1, 2011 for $807000. The machine had an expected life of 20 years and was expected to have a salvage value of $77000. On July 1, 2021, the company reviewed the potential of the machine and determined that its future net cash flows totaled $403000 and its fair value was $298000. If the company does not plan to dispose of it, what should Concord record as an impairment loss on July 1, 2021? a. $20750 b. $0 c. $28000 d. $125750

Q: Sunland Company purchased a machine on July 1, 2020, for $970000. The machine has an estimated…

A: The rate of depreciation under 150% declining balance method is calculated by dividing 150 by the…

Q: On, April 1, 2020, S. Products Co. purchased new machinery for $450,000. The machinery has an…

A: The objective of the question is to journalize all entries required for the machine from April 1,…

Q: Madison Company purchased a machine on February 1, 2018, for $200,000. On December 31, 2021, when…

A: Solution: Book value of machine on Dec 31, 2021 = $90,000 Expected future cash flows = $70,000 Fair…

Q: Vaughn Ltd. purchased a building on January 1, 2021 for $14,610,000. Vaughn accounted for this asset…

A: Jan 1, 21 Building    a/c                     Dr         1,46,10,000     >>>> To Bank…

Q: Vaughn Manufacturing purchased a new machine on May 1, 2012 for $566400. At the time of acquisition,…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: On December 31, 2022, Belt Enterprises must measure its impairment loss for plant and equipment.…

A: Impairment loss occurs when the carrying value of an asset is higher than the recoverable value of…

Q: 1.What is the carrying amount of the impaired asset on December 31, 2027? 2. What amount should be…

A: Carrying amount is the amount at which an asset is recognised after deducting any accumulated…

Q: Jackson Company purchased $50,000 in equipment on July 1, 2021. The equipment had a 10-year useful…

A: Net income is the amount of total revenue which is left over after deducting all the expenses…

Q: Equipment was purchased on January 2, 2020, for $24,000, but no portion of the cost has been charged…

A: Depreciation: Depreciation is the reduction in the value in a fixed asset due to natural factors…

Q: was the gain/ loss on the sale of the machine?

A: Solution   Prepared the Machinery Account for Calculate the Gain or Loss on sale of Machinery

Q: Miss Granny purchased a machine amounting to $700,000 on January 1, 2013 providing the newest kind…

A: At the time of making reclassification, the fair market value (FMV) of the respective element…

Q: Splish Company uses special strapping equipment in its packaging business. The equipment was…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: Chicken Wings Company purchased a copier for P447,150 on January 1, 2021. The estimated useful life…

A: Since the change in useful life is a change in accounting estimate the effect will be given…

Q: Wildhorse Co. purchased a machine on January 1, 2023, for $572.000. At that time, it was estimated…

A: Depreciation-as per sum of years digit method= (Number of useful years/sum of useful years)…

Q: Blue Mining Company purchased land on February 1, 2025, at a cost of $914,200. It estimated that a…

A: The cost of goods sold represent the direct cost incurred to produce the goods. The direct costs…

Q: depreciation expense

A: Depreciation expense = (Cost or last fair value - Residual value)/Useful life in years

Q: Teal Co. purchased a machine on January 1, 2018, for $588,500. At that time, it was estimated that…

A: Depreciation is the systematic decline in the value of non-current assets as a result of wear and…

Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…

A: Depreciation is considered as an expense charge on the value of the Asset. The most common method…

Q: Blossom Company purchased a warehouse on January 1, 2019, for $480,000. At the time of purchase,…

A: Impairment losses are important because they ensure that the financial statements accurately reflect…

Q: Dexter Inc. acquired a machine on January 1, 2010 for $520,000. The machine had an expected life of…

A: Impairment loss is recognised in books of accounts when carrying is more than the present value of…

Q: Crane Company uses special strapping equipment in its packaging business. The equipment was…

A: Depreciation as per straight line method = (cost - residual value) /usefullife

Q: Culver Ltd. purchased a building on January 1, 2021 for $14,880,000. Culver accounted for this asset…

A: Journal entries are prepared before preparing any other ledger account, financial statement, etc.…

Q: USK COMPANY purchased a wood cutter on September 1, 2019 for P652,000. At the time of acquisition,…

A: solution: given: purchase price (cost )     =P652,000 useful life           =14 years residual value…

Q: JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current…

A: Given Information: Replacement cost on December 31,2019      $1,500,000 Purchased on January 1,2017…

Q: JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current…

A: Depreciation: It is the gradual fall in the value of asset due to its normal usage in the production…

Q: Nash Mining Company purchased land on February 1, 2020, at a cost of $ 914,300. It estimated that a…

A:

Q: A building that was purchased on December 31, 2006, for $2,500,000 was originally estimated to have…

A: Annual depreciation prior to 2020:   Annual Depreciation = Cost / Estimated Life…

Q: On 30 June 2020, James Ltd acquired a machine for $200 500 cash, with an expected useful life of ten…

A: Fair Value Valuation of Non Current Assets While adopting the fair value valuation it can't measure…

Q: On January 1, 2018, CRIMSON Company purchased machineries for P10,560,000 and depreciated it by the…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Coronado Inc. purchased equipment for $1404000 in 2025. Three years later, the equipment has…

A: Impairment loss is done when carrying value of asset is higher than recoverable value of asset.…

Q: After recording depreciation for the current year, Media Mania Incorporated decided to discontinue…

A: Loss on impairment = carrying value - Recoverable amount Where, Recoverable amount = Lower of fair…

Q: On January 1, 2021, Cake Company acquired a factory equipment at a cost of P450,000. The equipment…

A: Lets understand the basics. As per IAS 36, "Impairement of assets", when recoverable amount of asset…

Q: On December 31, 2020, Sardines Company has an item of machinery with a cost of $4,500,000 and an…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: Concord Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of…

A: Depreciation Expense :— It is the allocation of depreciable cost over the useful life of asset.…

Q: Winia Corporation purchased farm equipment on January 1, 2019, for $280,000. In 2019 and 2020, Winia…

A: The Depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…

Q: riole Company purchased a machine on January 1, 2019, for $927000. At the date of acquisition, the…

A: Solution Given Cost 927000 Original estimated life 6 years Revised useful life 8…

Q: Acme Corp.

A: The monetary Accounting Standards Board (FASB) could be a personal standard-setting body[1] whose…

Q: 19, Ivanhoe Corporation acquired equipment at a cost of $858000. Ivanhoe adopted the…

A: Solution: Sum of years digits = 8+7+6+5+4+3+2+1 = 36 Accumulated Depreciation for 2019, 2020, 2021 =…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an…

A: As per straight line method of depreciation Depreciation per annum = (cost - Residual value) /useful…

Q: ABC Corporation bought an equipment with a total cost of P4,000,000 on Jan. 1, 2016. It was…

A: A  sudden decline in the value of an asset is called an impairment loss.

Q: ABC Inc. purchased a machine on January 1, 2014 for 900,000. This asset will be depreciated for 10…

A: Replacement cost - Replacement cost is the cost incurred to improve the performance of the assets.…

Q: Wildhorse Corporation purchased a machine on January 2, 2020, for $4900000. The machine has an…

A: Lets understand the basics.When temporary difference arise between the book profit and taxable…

Q: Oriole Corporation purchased a machine on January 2, 2020, for $4300000. The machine has an…

A: Deferred tax liabilities (DTL) represent the current obligation of assessed tax which is not yet…

Q: On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment.…

A: A sustained decrease in an asset's value is referred to as impairment in accounting. It might be…