What is the amount of the impairment loss that should bereported on Toni's income statement prepared for the year endedDecember 31, 20x3?a. 50,000(AICPA)b. 100,000c. 150,000d. 200,000 2. During December 20x3, Toni Corp. determined that there hadbeen a significant decrease in the value of its equipment usedin its roofing business. At December 31, 20x3, Toni compiledthe information below:Original cost of equipmentAccumulated depreciation800,000450,000Present value of expected net future cash inflowsrelated to the continued use and eventual disposalof the equipmentFair value less costs of disposal of the equipment300,000250,000

As per IAS 36 impairment loss is Carrying Amount - Recoverable amount Recoverable amount is higher…

Answered: What is the amount of the impairment…

What is the amount of the impairment loss that should be reported on Toni's income statement prepared for the year ended December 31, 20x3? a. 50,000 (AICPA) b. 100,000 с. 150,000 d. 200,000

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

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

What is the amount of the impairment loss that should be
reported on Toni's income statement prepared for the year ended
December 31, 20x3?
a. 50,000
(AICPA)
b. 100,000
c. 150,000
d. 200,000

2. During December 20x3, Toni Corp. determined that there had
been a significant decrease in the value of its equipment used
in its roofing business. At December 31, 20x3, Toni compiled
the information below:
Original cost of equipment
Accumulated depreciation
800,000
450,000
Present value of expected net future cash inflows
related to the continued use and eventual disposal
of the equipment
Fair value less costs of disposal of the equipment
300,000
250,000

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Step 1 Recognition of impairment as per IAS 36

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