Last itd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU.At 31 December 2019, the carrying amounts of the assets of the two divisions were as follows.TimeLeisure$1 500(650)240Plant$1200(375)Accumulated depreciationPatentInventories54ReceivablesGoodwill7582752520The receivables were regarded as collectable, and the inventories fair value less costs of disposal wadisposal of $220. The plant at Time was depreciated at $300 p.a, and that at Leisure was depreciatedLast Itd undertook impairment testing at 31 December 2019, and determined the recoverable amountTime$1044Leisure990As a result, management increased the depreciation of the Time plant from $300 to $350 p.a. for the yBy 31 December 2020, the performance in both divisions had improved, and the carrying amounts of tifollows.TimeLeisureCarrying amountRecoverable amount$13221502$14331520RequiredDetermine how Last Ltd should account for the results of the impairment tests at both 31 December 20e here to search

Impairment: Asset is impaired when carrying value on the balance sheet is higher than fair value of…

Last Ltd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU. At 31 December 2019, the carrying amounts of the assets of the two divisions were as follows. Time Lelsure Plant Accumulated depreciation Patent Inventories Recelvables Goodwill $1 500 (650) 240 54 75 25 $1200 (375) 75 82 20 The receivables were regarded as collectable, and the inventories fair value less costs of disposal wa disposal of $220. The plant at Time was depreciated at $300 p.a, and that at Leisure was depreciatec Last Ltd undertook impairment testing at 31 December 2019, and determined the recoverable amoun Time Leisure $1044 990 As a result, management increased the depreciation of the Time plant from $300 to $350 p.a. for the y By 31 December 2020, the performance in both divisions had improved, and the carrying amounts of t follows. Time Leisure Carrying amount Recoverable amount $1322 1502 $1433 1520 Required Determine how Last Ltd should account for the results of the impairment tests at both 31 December 20

Last Ltd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU. At 31 December 2019, the carrying amounts of the assets of the two divisions were as follows. Time Lelsure Plant Accumulated depreciation Patent Inventories Recelvables Goodwill $1 500 (650) 240 54 75 25 $1200 (375) 75 82 20 The receivables were regarded as collectable, and the inventories fair value less costs of disposal wa disposal of $220. The plant at Time was depreciated at $300 p.a, and that at Leisure was depreciatec Last Ltd undertook impairment testing at 31 December 2019, and determined the recoverable amoun Time Leisure $1044 990 As a result, management increased the depreciation of the Time plant from $300 to $350 p.a. for the y By 31 December 2020, the performance in both divisions had improved, and the carrying amounts of t follows. Time Leisure Carrying amount Recoverable amount $1322 1502 $1433 1520 Required Determine how Last Ltd should account for the results of the impairment tests at both 31 December 20

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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B1.
Required: 1. Calculate the impairment loss of goodwill (if any). 2. Record the appropriate journal entry.
4. On November 1, 2021, Agar-Agar Corporation had a division that met the criteria for discontinuance of a business component. For the period January 1 through November 1, 2021, the component had a revenue of P1,000,000 and expenses of P1,200,000. The assets of the component were sold on November 2, 2021 at a loss of P100,000. The income from continuing operations of Agar-Agar for 2021 was P5,000,000. The income tax rate is 25%. What amount should be reported as net income for 2021?
At December 31, 2023, Sandhill Corp's general ledger includes the following account balances: Copyrights $52500 Deposits with advertising agency (will be used to promote goodwill) 43000 Discount on bonds payable 74000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 589500 Trademarks 106000 In the preparation of Sandhill's balance sheet as of December 31, 2023, what should be reported as total intangible assets? O $158500 O $748000 $791000 O $822000
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Intangibles: Balance Sheet Presentation and Income Statement Effects Clinton Company has provided information on Intangible assets as follows: 1. A patent was purchased from Lou Company for $1,230,000 on January 1, 2018. Clinton estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of 5850,000 when Lou sold it to Clinton. 2. During 2019, a franchise was purchased from Rink Company for $550,000, In addition, 6% of revenue from the franchise must be pald to Rink. Revenue from the franchise for 2019 was $2,500,000. Clinton estimates the useful life of the franchise to be 5 years and takes a full vear's amortization in the year of purchase. 3. Clinton incurred RAD costs in 2019 as follows: Materials and equipment $147,000 Personnel 178,000 Indirect costs 69,000 $394,000 Clinton estimates that these costs will be recouped by December 31, 2020. 4. On January 1, 2019, Clinton estimates, based on new events,…
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