On December 31, 20x1, Entity A determines that its building is impaired. The following information is gathered: Building Accumulated Depreciation Fair Value less Cost of Disposal Value in Use 1,000,000 200,000 600,000 580,000 How much is the impairment loss?
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- Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific citation for each of the following items:1. Depreciation involves a systematic and rational allocation of cost rather than a process of valuation2. The calculation of an impairment loss for property, plant, and equipment3. Accounting for a change in depreciation method4. Goodwill should not be amortizedBelltone Company made the following expenditures related to its 10-year-old manufacturing facility:1. The heating system was replaced at a cost of $250,000. The cost of the old system was not known. The company accounts for improvements as reductions of accumulated depreciation.2. A new wing was added at a cost of $750,000. The new wing substantially increases the productive capacity ofthe plant.3. Annual building maintenance was performed at a cost of $14,000.4. All of the equipment on the assembly line in the plant was rearranged at a cost of $50,000. The rearrangementclearly…11. ABC Company owns a noncurrent asset, which is damaged and is to be reviewed for impairment, to which the following information relates:Current carrying amount - 200,000Fair value - 220,000Expected disposal cost - 10,000Value in use - 205,000What should be the carrying amount of the asset after the impairment review?Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value A $18,000 B 16,000 с 12,000 $16,000 18,000 24,000 $24,000 26,000 16,000 Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Case A $ Case B $ Case C $ Note: If the asset is not impaired, enter a zero (or leave blank) for the loss. Note: Do not use negative signs with your answers. Impairment Loss b. Record the entry for the impairment loss on the case(s) identified in part a (if any). Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name ♦ ♦ Dr. Cr.
- All of the following are key steps related to accounting for impairments of long-term operating assets except ________. Group of answer choices measurement subsequent to impairment asset grouping derecognition of impairment testing for impairmentInvestment property under the cost model would require ? Tested for impairment only Measured at fairvalue at year end To be depreciated only To be depreciated and tested for impairment annuallyThe Cello Co. is considering whether according to IAS 36 - 'Impairment of Assets', any impairment loss has occurred on its major factory in the Sohar industrial area. Current carrying value (i.e. cost less accumulated depreciation), OMR 80m. Value in use, OMR 120m and Fair value less cost of disposal, OMR 60m. What is the amount of the impairment loss to be recognized? O a. Impairment loss: Nil. O b. Impairment loss: OMR 20,000. O c Impairment loss: OMR 60,000. O d. Impairment loss: OMR 40,000.
- How are intangible assets with an indefinite life treated? A. They are depreciated. B. They are amortized. C. They are depleted. D. They are tested yearly for impairment.Which of the following items is not a separate CGT asset for the purposes of Subdivision 108-D ITAA97? A capital improvement to a pre-CGT asset that cost $52,000 in 1998. A building or structure built in May 1998 on pre-CGT Tand. A building or structure built in May 1998 on post-CGT land for which a balancing adjustment would apply on disposal. A depreciation asset that is part of a building or structure on post-CGT land. Land acquired after 19 September 1985 that amalgamated on the same title as land acquired before that date.Assume that the following asset group has been deemed impaired by $500,000 (as a group). Asset/Liability Pre-Impairment Net Carrying Value Fair Value Asset A $ 900,000 $600,000 Asset B $300,000 ? Asset C $450,000 $400,000 Asset D $600,000 ? Per your understanding of the application of ASC 360, what would be the post- impairment carrying value for Asset C? Group of answer choices $350,000 $400,000 $450,000 $0
- 1. Find the proper FASB ASC citation that provides guidance on the measurement of an impairment loss for a long-lived asset. (The citation must follow xxx-xx-xx-xx or xxx-xx-xx-x format)Hi please help with below questions, thanks much. Respond to the following in a minimum of 175 words: Explain what is meant by the impairment of the value of property, plant, and equipment and intangible assets. How should these impairments be accounted for?Which of the following is not a requirement for an asset to be depreciable?a. It must have a life longer than 1 year b. It must have a basis(initial purchase plus installation cost) greater than $1,000 c. It must be held with the intent to produce income d. It must wear out or get used up.