Problem 17: Kankanaey Company determined that due to obsolescence, equipment carried at cost acquired 3 years ago with original cost of P 5,400,000 with residual value of P400,000 and accumulated depreciation using a straight-line method of depreciation at January 1, 2019 of P1, 500,000 has suffered permanent impairment and as a result should have a recoverable value of only P 2,500,000 as of the end of the year. In addition, the remaining useful life of the equipment was reduced to 4 years with no residual value. On January 1, 2021, it isdearly determinable that the recoverable amount of the equipment is P2,000,000. 52. How much impairment loss would be recognized in 2019? 53. How much gain on reversal of impairment should be recognized on January 1, 2021? 54. How much depreciation will be recognized in 2020?

Problem 17: Kankanaey Company determined that due to obsolescence, equipment carried at cost acquired 3 years ago with original cost of P 5,400,000 with residual value of P400,000 and accumulated depreciation using a straight-line method of depreciation at January 1, 2019 of P1, 500,000 has suffered permanent impairment and as a result should have a recoverable value of only P 2,500,000 as of the end of the year. In addition, the remaining useful life of the equipment was reduced to 4 years with no residual value. On January 1, 2021, it isdearly determinable that the recoverable amount of the equipment is P2,000,000. 52. How much impairment loss would be recognized in 2019? 53. How much gain on reversal of impairment should be recognized on January 1, 2021? 54. How much depreciation will be recognized in 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Domestic
PQ16.07 Faster Company purchased equipment in 2010 for $104,000 with an estimated salvage value of $8,000 and a 10-year useful life. At December 31, 2016, there was $67,200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2017, the equipment was sold for $21,000. Prepare the appropriate journal entries to remove the equipment from the books of Faster Company on March 31, 2017.
7. For AP Company, the following transactions occurred: a. On January 1 of 2018, the company paid $20,000 for the purchase of equipment. This equipment had no estimated residual value and was depreciated at a straight-line rate of 20%. The expected useful life is 5 years. b. After the December 31, 2019, adjusting entry, Accumulated Depreciation Equipment has a $8,000 balance. c. On March 31, 2020, the asset is removed from service and discarded. Based on this information, please record these transactions in the journal.
sa
Subject: accounting
What amount of the Loss on impairment's equipment at December, 31 3 คะแนน 2019? Presented below is information related to equipment owned by Margaret Company at December 31, 2019 Cost $ 1,350,000 Accumulated depreciation to date $ 518,400 Fair value less cost to disposal $ 360,000 Value in use $ 453,600 As of December 31, 2019, the equipment has a remaining useful life 3 years. คำตอบของคุณ
Presented below is information related to Wolfie Corp.’s equipment on 12/31/2022: Description Amount Capitalized cost $900,000 Accumulated depreciation to date 750,000 Estimated residual value 40,000 Expected future cash flows 125,000 Estimated Fair value 100,000 The amount of the impairment loss, if any, that Wolfie Corp. should record on 12/31/22 is: $45,000 $50,000 $10,000 $20,000 $25,000 There is no impairment.
Case E Robert Sporting Goods Company has another piece of equipment (Q102) with the following cost and accumulated depreciation at its year ended December 31, 2020: Equipment (Q102) $9 000 000 Accumulated Depreciation 3 000 000 Due to obsolescence and physical damage, the equipment was found to be impaired. At the year-end Robert Sporting Goods Company had determined the following information: Fair value less cost of Disposal $4 500 000 Value in use or discounted net cash flows 4 000 000 Undiscounted net cash flows 5 500 000 Required: Assess equipment (Q102) for impairment and prepare the journal entry (if necessary) to report any impairment loss for the year. When selecting from dropdown lists, if a line item…
The following is information about your client's non-current assets (in thousands of Rupiah): Non-current asset list Equipment Machinery Automobile Building Land Cost Total Ending Balance 2020 Accumulated depreciation 433,572,100 67,697,710 12,450,000 4,870,000 92,500,000 52,850,000 599,302,100 92,653,710 The following information is obtained from the client: 7,930,000 1,586,000 18,500,000 Net Book Value 6,344,000 365,847,390 7,580,000 74,000,000 52,850,000 506,648,390
Equipment with a cost of $88,200, an estimated residual value of $4,200, and an estimated life of 14 years was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years is a.$12,840 b.$24,000 c.$7,133 d.$4,586
38
Rakesh