Crane Inc. owns assets to which it applies the revaluation model (asset-adjustment method). The following additional information isavailable:1. The depreciation expense for 2024 was $6780.2. Between December 31, 2023, and December 31, 2024, the property's fair value had increased by $33900.3. The December 31, 2024, balance in the revaluation surplus account (prior to any fair value adjustments) was $2260.The adjusted December 31, 2024, balance in the related contra-asset account will be○ $11300.$15820.○ $0.○ $13560.

To determine the adjusted December 31, 2024 balance in the related contra-asset account, we need to…

Answered: Crane Inc. owns assets to which it…

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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Stag, a public limited company, is preparing its financial statements for the year ending 31 December 2021. The exhibits contain information relevant to the question. Exhibit 1– Accounting for ImpairmentStag plc, which has a 31 December year end, acquired an item of property, plant, and equipment (PPE) on 1 January 2019 for £50,000 for which it applies the revaluation model. The asset is depreciated on a straight-line basis over its useful economic life of ten years (the assumed residual value is nil). On 1 January 2020, it was established that the gross replacement cost of the asset (i.e. the gross revalued amount of the asset before any depreciation is deducted) was £60,000. On 31 December 2021, there are indications that the asset is impaired, an impairment test is carried out, and the recoverable amount at that date is estimated as £30,000. Requirement:Using Exhibit 1, explain the impact of the transactions on the financial statements 2020 and 2021. (Hint: you can show the double…
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Dain's Diamond Bit Drilling purchased the following assets this year. Purchase Original Asset Date Drill bits (5-year) January 25 $ Drill bits (5-year) July 25 Commercial building April 22 Basis 102,500 113,250 266,000 Assume its taxable income for the year was $55,250 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) c. If the January drill bits' original basis was $2,491,500, what is the maximum amount of $179 expense Dain's may deduct for the year?
None
PT Adista owns land that was purchased in cash on January 2, 2018 at a cost of IDR 1,000,000,000. Requested: a. PT Adista decided to use the revaluation model for the land (which is a fixed asset). On December 31, 2018, the company recognized a revaluation surplus of the land amounting to Rp 100,000,000. If on December 31, 2019 it is known that the fair value of the land is IDR 1,060,000,000, make a journal entry that is recorded by PT Astina regarding the land in 2019. b. Describe how the accounting treatment differs between the fixed asset revaluation model and the fair value model of investment property.
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On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment. Delater has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or par Plant and Equipment Carrying value Less: Fair value Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then c December 31, 2022 2,145,000 915,000 $ (2,145,000) 1,230,000 $ (915,000) Account Accumulated Depreciation Plant and Equipment Impairment Loss on Plant and Equipment Plant and Equipment Determine the revised annual depreciation…
D

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