Please answer the following question Must choose from the following LIST OF ACCOUNTS: Accumulated DepletionAccumulated Depreciation - AutomobilesAccumulated Depreciation - BuildingsAccumulated Depreciation - EquipmentAccumulated Depreciation - Furniture and FixturesAccumulated Depreciation - MachineryAccumulated Depreciation - VehiclesAccumulated Impairment Losses - BuildingAccumulated Impairment Losses - EquipmentAccumulated Impairment Losses - LandAccumulated Impairment Losses - MachineryAccumulated Impairment Losses - MineAccumulated Impairment Losses - PatentsAccumulated Impairment Losses - Tools and DiesAccumulated Impairment Losses - VehiclesAsset Retirement ObligationBuildingsCashCommon SharesContribution ExpenseCost of Goods SoldDeferred Revenue - Government GrantsDepreciation ExpenseEquipmentFurniture and FixturesGain on Disposal of AutomobilesGain on Disposal of BuildingGain on Disposal of EquipmentGain on Disposal of Furniture and FixturesGain on Disposal of MachineryGain on Disposal of VehiclesGain on Sale of LandInterest ExpenseInterest PavableInventoryInvestment PropertyLandLiability for Site RestorationLoss on Disposal of AutomobilesLoss on Disposal of BuildingLoss on Disposal of EquipmentLoss on Disposal of MachineryLoss on Disposal of VehiclesLoss on ExpropriationLoss on ImpairmentLoss on Sale of LandMachineryMineral ResourcesNo EntryNotes PayableOil PropertyRecovery of Loss from ImpairmentRepairs and Maintenance ExpenseRetained EarningsRevaluation Surplus (OCI)Revenue - Government GrantsRoyalty ExpenseVehicles Repeat the requirements in part (a) above assuming that Sweet Acacia is a public company that follows IFRS. (Credit account titlesare automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accounttitles and enter O for the amounts. List all debit entries before credit entries.)No. Date(1)(2)(3)December31, 2023December31, 2024December31, 2024Account Titles and ExplanationDebitCredit The information that follows relates to equipment owned by Sweet Acacia Limited at December 31, 2023:CostAccumulated depreciation to dateExpected future net cash flows (undiscounted)Expected future net cash flows (discounted, value in use)Fair valueCosts to sell (costs of disposal)(a)Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining usefullife of four years. Sweet Acacia uses the straight-line method of depreciation.1.Assume that Sweet Acacia is a private company that follows ASPE.2.3.Your answer is correct.(1)No. Date(2)(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "NoEntry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)(3)Prepare the journal entry at December 31, 2023, to record asset impairment, if any.Prepare the journal entry to record depreciation expense for 2024.The equipment's fair value at December 31, 2024, is $7.15 million. Prepare the journal entry, if any, to record the increasein fair value.December31, 2023December31, 2024December31, 2024Account Titles and ExplanationLoss on Impairment$9,900,0001,100,0007,700,0006,985,0006,820,000Accumulated Impairment Losses - EquipmentDepreciation ExpenseAccumulated Depreciation - Equipment55,000No EntryNo EntryDebit1980000170500010Credit198000170500II

A One step model is used for impairment testing for fixed assets under IFRS. Under this model, the…

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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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Question

Please answer the following question

Must choose from the following LIST OF ACCOUNTS:

Accumulated Depletion

Accumulated Depreciation - Automobiles

Accumulated Depreciation - Buildings

Accumulated Depreciation - Equipment

Accumulated Depreciation - Furniture and Fixtures

Accumulated Depreciation - Machinery

Accumulated Depreciation - Vehicles

Accumulated Impairment Losses - Building

Accumulated Impairment Losses - Equipment

Accumulated Impairment Losses - Land

Accumulated Impairment Losses - Machinery

Accumulated Impairment Losses - Mine

Accumulated Impairment Losses - Patents

Accumulated Impairment Losses - Tools and Dies

Accumulated Impairment Losses - Vehicles

Asset Retirement Obligation

Buildings

Cash

Common Shares

Contribution Expense

Cost of Goods Sold

Deferred Revenue - Government Grants

Depreciation Expense

Equipment

Furniture and Fixtures

Gain on Disposal of Automobiles

Gain on Disposal of Building

Gain on Disposal of Equipment

Gain on Disposal of Furniture and Fixtures

Gain on Disposal of Machinery

Gain on Disposal of Vehicles

Gain on Sale of Land

Interest Expense

Interest Pavable

Inventory

Investment Property

Land

Liability for Site Restoration

Loss on Disposal of Automobiles

Loss on Disposal of Building

Loss on Disposal of Equipment

Loss on Disposal of Machinery

Loss on Disposal of Vehicles

Loss on Expropriation

Loss on Impairment

Loss on Sale of Land

Machinery

Mineral Resources

No Entry

Notes Payable

Oil Property

Recovery of Loss from Impairment

Repairs and Maintenance Expense

Retained Earnings

Revaluation Surplus (OCI)

Revenue - Government Grants

Royalty Expense

Vehicles

Repeat the requirements in part (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. List all debit entries before credit entries.)
No. Date
(1)
(2)
(3)
December
31, 2023
December
31, 2024
December
31, 2024
Account Titles and Explanation
Debit
Credit

The information that follows relates to equipment owned by Sweet Acacia Limited at December 31, 2023:
Cost
Accumulated depreciation to date
Expected future net cash flows (undiscounted)
Expected future net cash flows (discounted, value in use)
Fair value
Costs to sell (costs of disposal)
(a)
Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful
life of four years. Sweet Acacia uses the straight-line method of depreciation.
1.
Assume that Sweet Acacia is a private company that follows ASPE.
2.
3.
Your answer is correct.
(1)
No. Date
(2)
(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 all debit entries before credit entries.)
(3)
Prepare the journal entry at December 31, 2023, to record asset impairment, if any.
Prepare the journal entry to record depreciation expense for 2024.
The equipment's fair value at December 31, 2024, is $7.15 million. Prepare the journal entry, if any, to record the increase
in fair value.
December
31, 2023
December
31, 2024
December
31, 2024
Account Titles and Explanation
Loss on Impairment
$9,900,000
1,100,000
7,700,000
6,985,000
6,820,000
Accumulated Impairment Losses - Equipment
Depreciation Expense
Accumulated Depreciation - Equipment
55,000
No Entry
No Entry
Debit
1980000
1705000
10
Credit
198000
170500
II

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