B. If Flint prepares financial statements in accordance with ASPE, what is the recoverable amount of the equipment at November 30, 2023?Recoverable amount $ Flint Corp. is preparing its financial statements for the fiscal year ended November 30, 2023. Certain specialized equipment wasscrapped on January 1, 2024. At November 30, 2023, this equipment was being used in production by Flint and had a carrying amountof $0.99 million. As at November 30, 2023, it was estimated that the asset had undiscounted net future cash flows of $1.75 million,value in use of $690,000, and fair value less costs of disposal of $60,000 (scrap value).(a)If Flint prepares financial statements in accordance with IFRS, what is the recoverable amount of the equipment at November 30,2023?Recoverable amount$

The recoverable amount signifies the highest value an asset can generate, used to assess its worth…

Answered: Recoverable amount $

Business

Accounting

Recoverable amount $

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

B. If Flint prepares financial statements in accordance with ASPE, what is the recoverable amount of the equipment at November 30, 2023?

Recoverable amount $

Flint Corp. is preparing its financial statements for the fiscal year ended November 30, 2023. Certain specialized equipment was
scrapped on January 1, 2024. At November 30, 2023, this equipment was being used in production by Flint and had a carrying amount
of $0.99 million. As at November 30, 2023, it was estimated that the asset had undiscounted net future cash flows of $1.75 million,
value in use of $690,000, and fair value less costs of disposal of $60,000 (scrap value).
(a)
If Flint prepares financial statements in accordance with IFRS, what is the recoverable amount of the equipment at November 30,
2023?
Recoverable amount
$

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