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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11-24. IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June 30, 20X0, IceCap purchased a hotel for €2,100,000. IceCap reports hotel values on the balance sheet under Property, plant, and equipment. The estimated useful life of the hotel is 30 years from the date of purchase. The company uses straight-line depreciation for its hotels. The appraisal value for the hotel (which you can assume is the same as the recoverable amount) was reported as: Appraisal Date Hotel Value 12/31/20X0 €2,200,000 12/31/20X1 €1,400,000 2/31/20X2 €1,700,000 Required: 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. 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.
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.
A financial analyst is analyzing the amortization of a product patent acquired by MAKETTIS.p.A., an Italian corporation. He gathers the following information about the patent:Acquisition cost €5,800,000Acquisition date 1 January 2009Patent expiration date 31 December 2015Total plant capacity of patented product 40,000 units per yearProduction of patented product in fi scal year ended 31 December 2009 20,000 unitsExpected production of patented product during life of the patent 175,000 unitsIf the analyst uses the units-of-production method, the amortization expense on the patent for fiscal year 2009 is closest to:A. €414,286.B. €662,857.C. €828,571.
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?
Vishanu
Lexes LLC bought an equipment on the 1st January 2015 at a cost of OMR 800,000. It is being depreciated over a period of 20 years as per straight line basis. In the year 2018 the company decided to use revaluation model to value its equipment. The market value as on 31st December 2018 as per professional experts was OMR 580,000. Which of the following statement is correct with reference to above situation? a- The value of equipment at the end of 31st December 2020 shall be 507,500. b- None of them c- There is a revaluation gain at the end of year 2018 d- The accumulated depreciation until 31st December 2020 on equipment shall be OMR 240,000.
Lexes LLC bought an equipment on the 1st January 2015 at a cost of OMR 800,000. It is being depreciated over a period of 20 years as per straight line basis. In the year 2018 the company decided to use revaluation model to value its equipment. The market value as on 31st December 2018 as per professional experts was OMR 580,000. Which of the following statement is correct with reference to above situation? None of them There is a revaluation gain at the end of year 2018 The value of equipment at the end of 31st December 2020 shall be 507,500. The accumulated depreciation until 31st December 2020 on equipment shall be OMR 240;000. Which of the following intangibles is/ are prohibited from being recognized as an asset? 04:54 EN T-TI/-V
Z Limited purchases an asset for $50,000 from CashCrow Company on 1 January 2015 for cash. Z Ltd also pays for delivery of the machine and installation of the machine which cost $6,000 Record the purchase of the machine for Z Ltd Z Ltd expects to use this machine for a period of 10 years and the machine is expected to have a residual value of $2,000 Record depreciation on this machine for the year ended 31/12/2015 How Is the purchase of this machine reflected in the cashflow statement of: CashCrow Company for the year ended 31/12/2015? – cash inflow investing activities ($50,000) Z Ltd for the year ended 31/12/2015 – cash outflow investing activities ($56,000)
Crane Ltd. purchased an electric wax melter on April 30, 2023, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new melter Cash paid Cost of old melter (5-year life, $690 residual value) Accumulated depreciation on old melter (straight-line) Market value of old melter in active secondary market Account Titles and Explanation (To record depreciation expense to date of exchange) $16,000 Assuming that Crane's fiscal year ends on December 31 and depreciation has been recorded through December 31, 2022, prepare the journal entries that are necessary to record this exchange. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (To record equipment exchange) 6,500 12,690 7,200 6,080 Debit TUOT Credit www.
Barb Company has provided information on intangible assets as follows:1. A patent was purchased from Lou Company for $1,500,000 on January 1, 2018. Barb estimated the remaining useful life of the patent to be 10 years. The patent was carried in Lou’s accounting records at a net book value of $1,250,000 when Lou sold it to Barb.2. During 2019, a franchise was purchased from Rink Company for $500,000. In addition, 5% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Barb estimates the useful life of the franchise to be 10 years and takes a full year’samortization in the year of purchase.3. Barb incurred R&D costs in 2019 as follows.
On January 2, 2000, the Ajax Plumbing Corporation purchases an automatic soldering machine for $18,000. The Corporation plans to transfer the machine to a subsidiary at the end of 2005 for $11,000. Determine the life of the machine so that the book value at the end 2005 will be $11,000, if the salvage value after L years should be $4,000 using:a. SLMb. DDBM
Windsor Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $700 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter No. Account Titles and Explanation (a) Exchange has commercial substance: (To record current depreciation.) Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Windsor's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (To record exchange of the equipment.)…