Dept. of Agriculture determines an indication that its investment property purchased on Jan.1 2005 might be impaired starting Jan. 1, 2008. The entity gathers the followinginformation:Carrying amount of investment propertyP1,200,000Fair value less cost to sel990,000Value in Use800,000Residual value5%Following the impairment, DA revises its remaining useful life to 12 years. Compute for the following:Six years after the impairment, D.A. determines an indication that the impairment may no longer exist. The investment property would have a carrying amount of P650,000 by now.Compute for the following:c) Carrying amount as of Dec 31, 2013d) Gain on the reversal of the impairment

When a company helds a property as investment property , as per standard…

Answered: Dept of Agriculture determines an…

Dept of Agriculture determines an indication that its investment property purchased on Jan 1 2005 might be impaired starting Jan. 1. 2008. The entity gathers the fol

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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At December 31, 2019, certain accounts included in the property, plant, and equipment section of Blue Spruce Corporation’s statement of financial position had the following balances: Land $309,730 Buildings—Structure 882,700 Leasehold Improvements 704,930 Equipment 844,920 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,790 plus a fee of $6,780 to the real estate agent for finding the property. Costs of $33,140 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,950. 2. Land site No. 622, which had a building on it, was acquired for $559,950. The closing statement indicated that the land’s assessed tax value was $308,680 and the building’s value was $101,830. Shortly after acquisition, the building was demolished at a cost of $27,640. A new building was constructed for $339,530 plus the following costs: Excavation fees $37,960 Architectural design…
Prepare a nowchart for MACRS depreciationicost recovery of fixed assets. You may limit your flowchart to tangible personal property falling into the 5 and 7 year classes and roal property used in rental and non-rental classes. For purposes of your flowchart, you should assume that Soction 179 exists as well as any "bonus depreciation" provisions that would apply to 2023 acquisitions. Your flowchart does not need to reflect any limitations applicable to automobiles. You may also ignore any depreciation implications related to: Section 179 bonus depreciation on REAL property Alternate MACRS lives/ methods Alternative Minimum Tax State Income taxes You should base your flowchart on 2023 tax provisions. FORMAT Your fiowchart(s) should be asable reference tool that one could follow to determine the proper treatment for any covered situation.
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
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In the light of MFRS138 Intangible Asset, briefly explain how each of the above transaction should be accounted for in the financial statements of PJM Bhd for the year ended 31 December 2017. Discuss the recognition criteria for intangible assets contained in MFRS138. (a) (b)
E9.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. a. Money borrowed to pay building contractor (signed a note) b. Payment for construction from note proceeds c. Cost of land fill and clearing d. Delinquent real estate taxes on property assumed by purchaser e. Premium on 6-month insurance policy during construction f. Refund of 1-month insurance premium because construction completed early g. Architect's fee on building h. Cost of real estate purchased as a plant site (land $200,000 and building $50,000) i. Commission fee paid to real estate agency j. Installation of fences around property k. Cost of razing and removing building 1. Proceeds from salvage of demolished building m. Interest paid during construction on money borrowed for construction n. Cost of parking lots and driveways o. Cost of trees and shrubbery…
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