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F12.15 (LO3,4) (Goodwill Impairment) Presented below is net asset information related to the Ting Division of Santana Ltd. Ting Division Net Assets as of December 31, 2019 (in millions) Property, plant, and equipment (net) HK$2,600 Goodwill 200 Accounts receivable Cash Less: Notes payable 200 60 (2,700) Net assets HK$ 360 The purpose of the Ting Division (cash-generating unit) is to develop a nuclear-powered aircraft. If suc- cessful, traveling delays associated with refueling could be substantially reduced. Many other benefits Would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be HK$400 million. Management has also received an offer to purchase the division for HK$335 million (fair value less costs to sell). All identifiable assets' and liabilities' book and fair value amounts are the same. Instructions

F12.15 (LO3,4) (Goodwill Impairment) Presented below is net asset information related to the Ting Division of Santana Ltd. Ting Division Net Assets as of December 31, 2019 (in millions) Property, plant, and equipment (net) HK$2,600 Goodwill 200 Accounts receivable Cash Less: Notes payable 200 60 (2,700) Net assets HK$ 360 The purpose of the Ting Division (cash-generating unit) is to develop a nuclear-powered aircraft. If suc- cessful, traveling delays associated with refueling could be substantially reduced. Many other benefits Would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be HK$400 million. Management has also received an offer to purchase the division for HK$335 million (fair value less costs to sell). All identifiable assets' and liabilities' book and fair value amounts are the same. Instructions

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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472-1001-84 in 2019 total €24,000. The patent has an expected useful life of 5 yearn these costs in journal entry form. Also, record patent amortizoti C. In 2020, the company succerot €325,000 on a research project, but by the end of 2018 it is impossible to determine whether any benefit will viability). Additional administrative and legal expenses incurred in obtaining patent number E12.16 (LO5) (Accounting for R&D Costs) Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2018, the company expends a. What account should be charged for the €325,000, and how should it be shown in the financial b. The project is completed in 2019, and a successful patent is obtained. The development costs to F2 15 (LO3,4) (Goodwill Impairment) Presented below is net asset information related to the Ting Division of Santana Ltd. Ting Division howquoa Net Assets as of December 31, 2019 (in millions) Idisa 0 b nonigs HK$2,600 200T Property, plant, and equipment (net) 200 Goodwill 60 Accounts receivable (2,700) Cash Less: Notes payable 00.23 HK$ 360 (&10S ni bonu Net assets The purpose of the Ting Division (cash-generating unit) is to develop a nuclear-powered aircraft. If suc- cessful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be HK$400 million. Management has also received an offer to purchase the division for HK$335 million (fair value less costs to sell). All identifiable assets' and liabilities' book and fair value amounts are the same. Instructions Prepare the journal entry (if any) to record the impairment at December 31, 2019. D. At December 31, 2020, it is estimated that the division's recoverable amount increased to HAS345 million. Prepare the journal entry (if any) to record this increase in fair value. Margaret Avery Company from time to time embarks €335 000 en program when a special project seems to offer possibilities. In 2018, the company expends be dar on a research project, but by the end of 2018 it is impossible to determine whether any benefit will derived from it. Instructions Statemennt should be charged for the €325.000, and how should it be shown in the financial complete is completed in 2019, and a successful patent is obtained. The development costs to the project are €110,000 (€36,000 of these costs were incurred after achieving economic thereby extendi Cost? A
Transcribed Image Text:472-1001-84 in 2019 total €24,000. The patent has an expected useful life of 5 yearn these costs in journal entry form. Also, record patent amortizoti C. In 2020, the company succerot €325,000 on a research project, but by the end of 2018 it is impossible to determine whether any benefit will viability). Additional administrative and legal expenses incurred in obtaining patent number E12.16 (LO5) (Accounting for R&D Costs) Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2018, the company expends a. What account should be charged for the €325,000, and how should it be shown in the financial b. The project is completed in 2019, and a successful patent is obtained. The development costs to F2 15 (LO3,4) (Goodwill Impairment) Presented below is net asset information related to the Ting Division of Santana Ltd. Ting Division howquoa Net Assets as of December 31, 2019 (in millions) Idisa 0 b nonigs HK$2,600 200T Property, plant, and equipment (net) 200 Goodwill 60 Accounts receivable (2,700) Cash Less: Notes payable 00.23 HK$ 360 (&10S ni bonu Net assets The purpose of the Ting Division (cash-generating unit) is to develop a nuclear-powered aircraft. If suc- cessful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be HK$400 million. Management has also received an offer to purchase the division for HK$335 million (fair value less costs to sell). All identifiable assets' and liabilities' book and fair value amounts are the same. Instructions Prepare the journal entry (if any) to record the impairment at December 31, 2019. D. At December 31, 2020, it is estimated that the division's recoverable amount increased to HAS345 million. Prepare the journal entry (if any) to record this increase in fair value. Margaret Avery Company from time to time embarks €335 000 en program when a special project seems to offer possibilities. In 2018, the company expends be dar on a research project, but by the end of 2018 it is impossible to determine whether any benefit will derived from it. Instructions Statemennt should be charged for the €325.000, and how should it be shown in the financial complete is completed in 2019, and a successful patent is obtained. The development costs to the project are €110,000 (€36,000 of these costs were incurred after achieving economic thereby extendi Cost? A
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