The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

Question

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Answer 1

Question

Chapter 12, Problem 12.1Q

To determine

The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

Expert Solution & Answer

Answer to Problem 12.1Q

Yes the impairment tests for tangible-long term operating assets operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.

Explanation of Solution

Tangible Assets:

Tangible assets are those assets that are physically present in an organization and will generate cash flows for a number of years.

Intangible Assets:

Intangible assets are those assets that are not physically present in an organization but have economic values and are capable to generate cash flows for a number of years.

The difference in the both tests can be explained in the points below:

The impairment tests for tangible-long term operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.
Impairment is calculated by measuring the asset’s recoverable value, if such value is less than its carrying amount than an impairment loss is booked.
Recoverable value is greater of (a) Fair value less cost to sell and; (b) Present value of expected cash flows expected from the asset.

Conclusion

Hence, the difference is that intangible assets are considered for impairment even if there is absence of impairment indicators while tangible assets are not.

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Transactions: Dec. 3 Wrote off Langston Corporation’s past-due account as uncollectible, $645.75. M203. 9 Accepted a 90-day, 8% note from Farris Company for an extension of time on its account, $2,400.00. NR23. 18 Received cash from Storage Solutions for the maturity value of NR19, a 90-day, 9% note for $2,000.00. R455. 21 Coastal Supply dishonored NR21, a 90-day, 8% note, for $3,000.00. M245. 30 Received cash in full payment of Langston Corporation’s account, previously written off as uncollectible, $645.75. M232 and R463. Task 1 Journalize the transactions for Miller Corporation in Questions Assets that were completed during December of the current year. Use page 12 of the general journal and page 12 of the cash receipts journal. Task 2 Post each entry to the general ledger and to the customer accounts in the accounts receivable ledger. You will not need to make entries to the Item columns of the ledgers. Task 3 Continue to…

Financial accounting question

Please provide the accurate answer to this general accounting problem using valid techniques.

Answer 2

Question

Chapter 12, Problem 12.1Q

To determine

The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

Expert Solution & Answer

Answer to Problem 12.1Q

Yes the impairment tests for tangible-long term operating assets operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.

Explanation of Solution

Tangible Assets:

Tangible assets are those assets that are physically present in an organization and will generate cash flows for a number of years.

Intangible Assets:

Intangible assets are those assets that are not physically present in an organization but have economic values and are capable to generate cash flows for a number of years.

The difference in the both tests can be explained in the points below:

The impairment tests for tangible-long term operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.
Impairment is calculated by measuring the asset’s recoverable value, if such value is less than its carrying amount than an impairment loss is booked.
Recoverable value is greater of (a) Fair value less cost to sell and; (b) Present value of expected cash flows expected from the asset.

Conclusion

Hence, the difference is that intangible assets are considered for impairment even if there is absence of impairment indicators while tangible assets are not.

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Answer 3

Question

Chapter 12, Problem 12.1Q

To determine

The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

Expert Solution & Answer

Answer to Problem 12.1Q

Yes the impairment tests for tangible-long term operating assets operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.

Explanation of Solution

Tangible Assets:

Tangible assets are those assets that are physically present in an organization and will generate cash flows for a number of years.

Intangible Assets:

Intangible assets are those assets that are not physically present in an organization but have economic values and are capable to generate cash flows for a number of years.

The difference in the both tests can be explained in the points below:

The impairment tests for tangible-long term operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.
Impairment is calculated by measuring the asset’s recoverable value, if such value is less than its carrying amount than an impairment loss is booked.
Recoverable value is greater of (a) Fair value less cost to sell and; (b) Present value of expected cash flows expected from the asset.

Conclusion

Hence, the difference is that intangible assets are considered for impairment even if there is absence of impairment indicators while tangible assets are not.

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Answer 4

Question

Chapter 12, Problem 12.1Q

To determine

The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

Expert Solution & Answer

Answer to Problem 12.1Q

Yes the impairment tests for tangible-long term operating assets operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.

Explanation of Solution

Tangible Assets:

Tangible assets are those assets that are physically present in an organization and will generate cash flows for a number of years.

Intangible Assets:

Intangible assets are those assets that are not physically present in an organization but have economic values and are capable to generate cash flows for a number of years.

The difference in the both tests can be explained in the points below:

The impairment tests for tangible-long term operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.
Impairment is calculated by measuring the asset’s recoverable value, if such value is less than its carrying amount than an impairment loss is booked.
Recoverable value is greater of (a) Fair value less cost to sell and; (b) Present value of expected cash flows expected from the asset.

Conclusion

Hence, the difference is that intangible assets are considered for impairment even if there is absence of impairment indicators while tangible assets are not.

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Answer 5

Chapter 12, Problem 12.1Q

To determine

The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

Expert Solution & Answer

Answer to Problem 12.1Q

Yes the impairment tests for tangible-long term operating assets operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.

Explanation of Solution

Tangible Assets:

Tangible assets are those assets that are physically present in an organization and will generate cash flows for a number of years.

Intangible Assets:

Intangible assets are those assets that are not physically present in an organization but have economic values and are capable to generate cash flows for a number of years.

The difference in the both tests can be explained in the points below:

The impairment tests for tangible-long term operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.
Impairment is calculated by measuring the asset’s recoverable value, if such value is less than its carrying amount than an impairment loss is booked.
Recoverable value is greater of (a) Fair value less cost to sell and; (b) Present value of expected cash flows expected from the asset.

Conclusion

Hence, the difference is that intangible assets are considered for impairment even if there is absence of impairment indicators while tangible assets are not.

Answer 6

Chapter 12, Problem 12.1Q

To determine

The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

Expert Solution & Answer

Answer to Problem 12.1Q

Yes the impairment tests for tangible-long term operating assets operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.

Explanation of Solution

Tangible Assets:

Tangible assets are those assets that are physically present in an organization and will generate cash flows for a number of years.

Intangible Assets:

Intangible assets are those assets that are not physically present in an organization but have economic values and are capable to generate cash flows for a number of years.

The difference in the both tests can be explained in the points below:

The impairment tests for tangible-long term operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.
Impairment is calculated by measuring the asset’s recoverable value, if such value is less than its carrying amount than an impairment loss is booked.
Recoverable value is greater of (a) Fair value less cost to sell and; (b) Present value of expected cash flows expected from the asset.

Conclusion

Hence, the difference is that intangible assets are considered for impairment even if there is absence of impairment indicators while tangible assets are not.

Answer 7

Chapter 12, Problem 12.1Q

To determine

The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

Answer 8

Expert Solution & Answer

Answer to Problem 12.1Q

Yes the impairment tests for tangible-long term operating assets operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Tangible Assets:

Tangible assets are those assets that are physically present in an organization and will generate cash flows for a number of years.

Intangible Assets:

Intangible assets are those assets that are not physically present in an organization but have economic values and are capable to generate cash flows for a number of years.

The difference in the both tests can be explained in the points below:

The impairment tests for tangible-long term operating assets and intangible assets are identical, the only difference is, that in case of intangible assets test for impairment is to be conducted even if there is absence of impairment indicators.
Impairment is calculated by measuring the asset’s recoverable value, if such value is less than its carrying amount than an impairment loss is booked.
Recoverable value is greater of (a) Fair value less cost to sell and; (b) Present value of expected cash flows expected from the asset.

Answer 12

Conclusion

Hence, the difference is that intangible assets are considered for impairment even if there is absence of impairment indicators while tangible assets are not.

Answer 13

Ch. 12 - Prob. 12.1Q Ch. 12 - Can firms group all property, plant, and equipment...Ch. 12 - Prob. 12.3Q Ch. 12 - Prob. 12.4Q Ch. 12 - Do firms follow the same steps for impairment...Ch. 12 - Prob. 12.6Q Ch. 12 - Prob. 12.7Q Ch. 12 - Prob. 12.8Q Ch. 12 - Under IFRS, if a firm recovers an impairment loss...Ch. 12 - Under IFRS, when do firms test plant assets and...

The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

The difference if any in the impairment test for tangible long-term operating assets from intangible assets.

Answer to Problem 12.1Q

Explanation of Solution

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