The information that follows relates to equipment owned by Sweet Acacia Limited at December 31, 2020: Cost Accumulated depreciation to date $ 11,160,000 1,240,000 Expected future net cash flows (undiscounted) 8,680,000 Expected future net cash flows (discounted, value in use) 7,874,000 Fair value 7,688,000 Costs to sell (costs of disposal) 62,000 Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2020, the equipment has a remaining useful life of four years. Sweet Acacia uses the straight-line method of depreciation. Repeat the requirements in (a) above assuming that Sweet Acacia is a public company that follows IFRS. (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.) Date Account Titles and Explanation December 31, 2020 Loss on Impairment Accumulated Impairment Losses - Equipment December 31, 2021 Depreciation Expense December Accumulated Depreciation - Equipment 31, 2021 Accumulated Impairment Losses - Equipment Recovery of Loss from Impairment Debit 2046000 1968500 Credit 2046000 1968500
The information that follows relates to equipment owned by Sweet Acacia Limited at December 31, 2020: Cost Accumulated depreciation to date $ 11,160,000 1,240,000 Expected future net cash flows (undiscounted) 8,680,000 Expected future net cash flows (discounted, value in use) 7,874,000 Fair value 7,688,000 Costs to sell (costs of disposal) 62,000 Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2020, the equipment has a remaining useful life of four years. Sweet Acacia uses the straight-line method of depreciation. Repeat the requirements in (a) above assuming that Sweet Acacia is a public company that follows IFRS. (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.) Date Account Titles and Explanation December 31, 2020 Loss on Impairment Accumulated Impairment Losses - Equipment December 31, 2021 Depreciation Expense December Accumulated Depreciation - Equipment 31, 2021 Accumulated Impairment Losses - Equipment Recovery of Loss from Impairment Debit 2046000 1968500 Credit 2046000 1968500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help, i cant figure out the last part
Transcribed Image Text:The information that follows relates to equipment owned by Sweet Acacia Limited at December 31, 2020:
Cost
Accumulated depreciation to date
$ 11,160,000
1,240,000
Expected future net cash flows (undiscounted)
8,680,000
Expected future net cash flows (discounted, value in use)
7,874,000
Fair value
7,688,000
Costs to sell (costs of disposal)
62,000
Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2020, the equipment has a remaining useful
life of four years. Sweet Acacia uses the straight-line method of depreciation.
Repeat the requirements in (a) above assuming that Sweet Acacia is a public company that follows IFRS. (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.)
Date
Account Titles and Explanation
December
31, 2020
Loss on Impairment
Accumulated Impairment Losses - Equipment
December
31, 2021
Depreciation Expense
December
Accumulated Depreciation - Equipment
31, 2021
Accumulated Impairment Losses - Equipment
Recovery of Loss from Impairment
Debit
2046000
1968500
Credit
2046000
1968500
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