Pink Ltd acquired a machine for $450,000 on 1 July 2017. The machine had a useful life of six years and was depreciated on a straight-line basis with no disposal value. Pink Ltd adopted the cost model for accounting for assets in this class. Indicators of impairment and/or indicators of a reversal of impairment losses were identified on 30 June 2018 and 30 June 2020. The estimates of the value of the machine at the end of financial periods were shown as below: Date Net selling price Value in use Fair Value 30 June 2018 $328,000 $315,000 $345,000 30 June 2019 $226,000 $228,000 $243,000 30 June 2020 $161,000 $167,000 $178,000 Do not include commas and dollar sign ($) in your answer. Present $1,000 as 1000. What is the recoverable amount of the machine on 30 June 2018? What is the amount of impairment loss for that machine that the firm should record on 30 June 2018 and 30 June 2019 ? Upon a consideration of a reversal of impairment losses, what is the ceiling on the carrying amount of the machine on 30 June 2020?
Pink Ltd acquired a machine for $450,000 on 1 July 2017. The machine had a useful life of six years and was depreciated on a straight-line basis with no disposal value. Pink Ltd adopted the cost model for accounting for assets in this class. Indicators of impairment and/or indicators of a reversal of impairment losses were identified on 30 June 2018 and 30 June 2020. The estimates of the value of the machine at the end of financial periods were shown as below: Date Net selling price Value in use Fair Value 30 June 2018 $328,000 $315,000 $345,000 30 June 2019 $226,000 $228,000 $243,000 30 June 2020 $161,000 $167,000 $178,000 Do not include commas and dollar sign ($) in your answer. Present $1,000 as 1000. What is the recoverable amount of the machine on 30 June 2018? What is the amount of impairment loss for that machine that the firm should record on 30 June 2018 and 30 June 2019 ? Upon a consideration of a reversal of impairment losses, what is the ceiling on the carrying amount of the machine on 30 June 2020?
Pink Ltd acquired a machine for $450,000 on 1 July 2017. The machine had a useful life of six years and was depreciated on a straight-line basis with no disposal value. Pink Ltd adopted the cost model for accounting for assets in this class. Indicators of impairment and/or indicators of a reversal of impairment losses were identified on 30 June 2018 and 30 June 2020. The estimates of the value of the machine at the end of financial periods were shown as below: Date Net selling price Value in use Fair Value 30 June 2018 $328,000 $315,000 $345,000 30 June 2019 $226,000 $228,000 $243,000 30 June 2020 $161,000 $167,000 $178,000 Do not include commas and dollar sign ($) in your answer. Present $1,000 as 1000. What is the recoverable amount of the machine on 30 June 2018? What is the amount of impairment loss for that machine that the firm should record on 30 June 2018 and 30 June 2019 ? Upon a consideration of a reversal of impairment losses, what is the ceiling on the carrying amount of the machine on 30 June 2020?
Pink Ltd acquired a machine for $450,000 on 1 July 2017. The machine had a useful life of six years and was depreciated on a straight-line basis with no disposal value. Pink Ltd adopted the cost model for accounting for assets in this class. Indicators of impairment and/or indicators of a reversal of impairment losses were identified on 30 June 2018 and 30 June 2020. The estimates of the value of the machine at the end of financial periods were shown as below:
Date
Net selling price
Value in use
Fair Value
30 June 2018
$328,000
$315,000
$345,000
30 June 2019
$226,000
$228,000
$243,000
30 June 2020
$161,000
$167,000
$178,000
Do not include commas and dollar sign ($) in your answer. Present $1,000 as 1000.
What is the recoverable amount of the machine on 30 June 2018?
What is the amount of impairment loss for that machine that the firm should record on 30 June 2018 and 30 June 2019 ?
Upon a consideration of a reversal of impairment losses, what is the ceiling on the carrying amount of the machine on 30 June 2020?
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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