IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June sheet under Property, plant, and equipment. The estimated useful life of the hotel is 30 years 30, 2000, IceCap purchased a hotel for €2,100,000. IceCap reports hotel values on the balance appraisal value for the hotel (which you can assume is the same as the recoverable amount) from the date of purchase. The company uses straight-line depreciation for its hotels. The was reported as: Appraisal Date 12/31/20X0 12/31/20X1 12/31/20X2 Hotel Value €2,200,000 €1,400,000 €1,700,000 P11-24 IFRS impairment and reval- uation (LO 11-10) Required: 1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap chooses the IFRS cost model to value this property. 2. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap chooses the IFRS revaluation model to value this property. AT&T c S S

IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June sheet under Property, plant, and equipment. The estimated useful life of the hotel is 30 years 30, 2000, IceCap purchased a hotel for €2,100,000. IceCap reports hotel values on the balance appraisal value for the hotel (which you can assume is the same as the recoverable amount) from the date of purchase. The company uses straight-line depreciation for its hotels. The was reported as: Appraisal Date 12/31/20X0 12/31/20X1 12/31/20X2 Hotel Value €2,200,000 €1,400,000 €1,700,000 P11-24 IFRS impairment and reval- uation (LO 11-10) Required: 1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap chooses the IFRS cost model to value this property. 2. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap chooses the IFRS revaluation model to value this property. AT&T c S S

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...

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White Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS. On June 30, 20X0, White purchased land for €3,000,000. White reports land values on the balance sheet under Property, plant, and equipment. The appraisal value for the land (which you can assume is the same as the recoverable amount) was reported as: Appraisal Date 12/31/20x0 12/31/20X1 12/31/20X2 Land Value €3,150,000 €2,750,000 €2,850,000 Required: 1. Prepare the journal entries at the end of 20X0, 20X1, and 20x2 to record any changes in value to this land asset if White chooses the IFRS cost model to value this property. 2. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS revaluation model to value this property.
Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for 1,500 each. The company uses group depreciation on a straight-line basis. Required: 1. Prepare journal entries to record the acquisition and the first years depreciation expense. 2. If one of the cars is sold at the beginning of the second year for 7,000, what journal entry is required?
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