The machinery's value in use has been assessed at $4,700,000 while the fair value less costs to sell is $4,000,000. With respect to themine, the value in use is $8,200,000 while fair value less costs to sell is $8,430,000.(b) Determine if the machinery and the mine are impaired and prepare the journal entries, if any, to record the impairment at June 30,2023. (Credit account titles are automatically intented 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.)DateJune 30,2023June 30,2023Account Titles and ExplanationRecovery of Loss from ImpairmentLoss on Impairment(To record the impairment of machinery)Loss on ImpairmentAccumulated Impairment Losses-Mine(To record the impairment of mine)Debit500000100220000Credit500000220000 Marigold Corp., a mining company, owns a significant mineral deposit in a northern territory. Marigold prepares financial statements inaccordance with IFRS. Included in the asset is a road system that was constructed to give company personnel access to the mineraldeposit for maintenance and mining activity. The road system cannot be sold separately and separate cash flow information is notavailable for it. The carrying amounts of two cash-generating units of the mine at June 30, 2023, are as follows:MachineryMine in the development phase$4,200,000$8,580,000The machinery's value in use has been assessed at $4,700.000 while the fair value less costs to sell is $4,000,000. With respect to themine, the value in use is $8,200,000 while fair value less costs to sell is $8,430,000.(b) Determine if the machinery and the mine are impaired and prepare the journal entries, if any, to record the impairment at June 30,2023. (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)

The term "asset impairment" refers to when the value of machinery is permanently reduced. When the…

The machinery's value in use has been assessed at $4,700,000 while the fair value less costs to sell is $4,000,000. With respect to the mine, the value in use is $8,200,000 while fair value less costs to sell is $8,430,000. (b) Determine if the machinery and the mine are impaired and prepare the journal entries, if any, to record the impairment at June 30, 2023. (Credit account titles are automatically intented 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) Date June 30, 2023 June 30, 2023 Account Titles and Explanation Recovery of Loss from Impairment Loss on Impairment (To record the impairment of machinery) Loss on Impairment Accumulated Impairment Losses-Mine (To record the impairment of mine) Debit 500000 220000 Credit 500000 100 220000

The machinery's value in use has been assessed at $4,700,000 while the fair value less costs to sell is $4,000,000. With respect to the mine, the value in use is $8,200,000 while fair value less costs to sell is $8,430,000. (b) Determine if the machinery and the mine are impaired and prepare the journal entries, if any, to record the impairment at June 30, 2023. (Credit account titles are automatically intented 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) Date June 30, 2023 June 30, 2023 Account Titles and Explanation Recovery of Loss from Impairment Loss on Impairment (To record the impairment of machinery) Loss on Impairment Accumulated Impairment Losses-Mine (To record the impairment of mine) Debit 500000 220000 Credit 500000 100 220000

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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