In Year 1, Manny Company purchased a piece of equipment with a cost of 76000 and a useful life of 5 years. At the beginning of Year 3, the company has determined the following: Expected future cash flows $42000 PV of expected future cash flows $37000 Net selling price $38000 Assuming the company used straight-line depreciation and the residual value is 0, what is the depreciation in Years 1 and 2 for US GAAP and IFRS? What is the net carrying amount at the beginning of Year 3 for US GAAP and IFRS? What is the impairment, if any, for US GAAP and IFRS as of the beginning of Year 3?

In Year 1, Manny Company purchased a piece of equipment with a cost of 76000 and a useful life of 5 years. At the beginning of Year 3, the company has determined the following: Expected future cash flows $42000 PV of expected future cash flows $37000 Net selling price $38000 Assuming the company used straight-line depreciation and the residual value is 0, what is the depreciation in Years 1 and 2 for US GAAP and IFRS? What is the net carrying amount at the beginning of Year 3 for US GAAP and IFRS? What is the impairment, if any, for US GAAP and IFRS as of the beginning of Year 3?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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