Rapids Company had assets as of December 31, 2022 of Original Accumulated Cost Depreciation/Amortization $56,000 $6,000 $50,000 $0 Asset Copyright Broadcasting license The company acquired the license in 2022. It is renewable every five years indefinitely Management is concerned about the value of the assets and decides to test for impairment. Management estimates the following information for each asset Asset Copyright Broadcasting license Undiscounted Future Cash Flows $57,000 $61,000 Fair Value $26,000 $25,000 What is the total amount of impairment loss for 2022? ENTER YOUR ANSWER AS A POSITIVE NUMBER.

Rapids Company had assets as of December 31, 2022 of Original Accumulated Cost Depreciation/Amortization $56,000 $6,000 $50,000 $0 Asset Copyright Broadcasting license The company acquired the license in 2022. It is renewable every five years indefinitely Management is concerned about the value of the assets and decides to test for impairment. Management estimates the following information for each asset Asset Copyright Broadcasting license Undiscounted Future Cash Flows $57,000 $61,000 Fair Value $26,000 $25,000 What is the total amount of impairment loss for 2022? ENTER YOUR ANSWER AS A POSITIVE NUMBER.

Name: Rapids Company had assets as of December 31, 2022 ofOriginalAccumulat
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Rapids Company had assets as of December 31, 2022 ofOriginalAccumulatedCost Depreciation/Amortization$50,000 $6,000AssetCopyrightBroadcastinglicense$50,000 $0The company acquired the license in 2022. It is renewable every five years indefinitelyMana

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

1-3: Lapeer Enterprises purchased equipment for $72,000 on January 1, 2019. The equipment is expected to have a six-year life and a residual value of $6,000. Lapeer used straight-line depreciation to record depreciation expenses. The equipment was sold for $30,000 on December 31, 2022. Lapeer Enterprises would record a gain/(loss) from the sale of: $30,000 $8,000 $2,000 ($2,000)
The information that follows relates to equipment owned by Buffalo Limited at December 31, 2023: Cost Accumulated depreciation to date $4,320,000 480,000 Expected future net cash flows (undiscounted) 3,360,000 Expected future net cash flows (discounted, value in use) 3,048,000 Fair value 2,976,000 Costs to sell (costs of disposal) 24,000 Assume that Buffalo will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Buffalo uses the straight-line method of depreciation. Assume that Buffalo is a private company that follows ASPE. (a) (b) (c) The equipment's fair value at December 31, 2024, is $3.12 million. Prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date…
Use this information to answer the following 6 questions. Madison Company acquired a depreciable asset at the beginning of Year 1 at a cost of $12 million. At December 31, Year 1, Madison gathered the following information related to this asset: Carrying value of the asset at 12/31/Y1 $10 million Fair value of the asset at 12/31/Y1 $7.5 million Sum of expected future cash flows at 12/31/Y1 $10 million Present value of expected future cash flows at 12/31/Y1 $8 million Remaining useful life at 12/31/Y1 5 years Determine the impact on Year 1 net income from depreciation and possible impairment under IFRS.
Cheesesteak's Sandwich Shop had the following long-term asset balances as of January 1, 2024: Cost Accumulated Depreciation Book Value Land $83,000 0 $83,000 Building 558,000 $(106,020) 451,980 Equipment 131,400 (29,600) 101,800 Patent 120,000 (48,000) 72,000 Additional information: Cheesesteak's purchased all the assets at the beginning of 2022. The building is depreciated over a 20-year service life using the double - declining - balance method and estimating no residual value. The equipment is depreciated over a 8-year useful life using the straight-line method with an estimated residual value of $13,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). For the year ended December 31, 2024 (third year), record depreciation expense for buildings and equipment. Land is not depreciated.
Depreciation Methods Gruman Company purchased a machine for $220,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 200,000 units Residual value $20,000 In 2019, Gruman uses the machine for 1,800 hours and produces 44,000 units. In 2020, Gruman uses the machine for 1,500 hours and produces 35,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2019 and 2020 under each of the following methods: a. Straight-line method 2019 $ 2020 $ b. Sum-of-the-years'-digits method 2019 $ 2020 $ c. Double-declining-balance method 2019 $ 2020 $ d. Activity method based on hours worked 2019 $ 2020 $ e. Activity method based on units of output
At December 31, Year 5, Aaron Co. had the following property, plant, and equipment: Asset Fair Value Cost to Sell Present Value of All Cash Flows Expected from the Asset Sum of All Undiscounted Cash Flows Expected from the Asset Useful Life from the Acquisition Date (Depreciation Method) Residual Value Equipment $220,000 $5,000 $230,000 $255,000 6 years (Straight Line) $0 Machine set 310,000 8,000 320,000 335,000 4 years (SYD) 0 Land 660,000 9,000 600,000 640,000 Determine the impairment losses recognized for Year 5 under U.S. GAAP and IFRS. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive numbers. If the correct answer is zero, enter a zero (0). Purchase Receipt 3 - Land Purchase Date: 1/1/Year 3 Purchase Amount: $650,000 Purchase Receipt 2 - Machine Set Purchase Date: 1/1/Year 5 Purchase Amount: $600,000 Purchase Receipt 1 - Equipment Purchase Date: 7/1/Year 2 Purchase…
During 2021, ABC Co. purchased intangible assets and debited them all to "Intangible assets". $250,000 $66,000 $50,000 1-Jan Patent 7-Year Life 1-Jun Goodwill Indefinite Life 1-Oct Research and development costs (a). Prepare a journal entry to reclassify them to an intangible asset account and/or expense account. (b). Prepare a journal entry to record amortization expense as of December 31, 2021.
None
Current Attempt in Progress Blossom Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $1,100 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter $23,100 14,600 16,400 9,200 7,600 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Blossom's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation (a) Exchange has commercial substance: Debit…
VIEW PUncles Current Attempt in Progress On December 31, 2025, Vaughn Inc. has a machine with a book value of $1,222,000. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value (a) $1,690,000 Depreciation is computed at $78,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. Date 468,000 Aug. 31, 2026 $1,222,000 A fire completely destroys the machine on August 31, 2026. An insurance settlement of $559,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the…
Depreciation and Rate of Return Burrell Company purchased a machine for $11, 000 on January 2, 2019. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $5,500 each year. The tax rate is 25%. Required: Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight - line and the double declining - balance depreciation methods. Assume that the machine is the company's only asset. Straight - line method. If required, round to one decimal place. 2019 fill in the blank 1% 2020 fill in the blank 2% 2021 fill in the blank 3% 2022 fill in the blank 4% 2023 fill in the blank 5% Double - declining - balance depreciation method. Round to two decimal places. Round your intermediate dollar value calculations to the nearest whole number. 2019 fill in the blank 6% 2020 fill in the blank 7% 2021 fill in the blank 8% 2022 fill in the…
can you please help with the highlighted question