Gravy Incorporated owns patents with a book value of $190,000. Expected future cash flows of $210,000...
Gravy Incorporated owns patents with a book value of $190,000. Expected future cash flows of $210,000 is estimated. The patent has a fair value of $140,000. How much, if any, Is the impairment loss? Explain your response.
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Gravy Incorporated owns patents with a book value of $190,000.
Expected future cash flows of $210,000...
Accounting (a) Peppers Corporation owns machinery with a book value of $190,000. It is estimated that...
Accounting (a) Peppers Corporation owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $180,000. The machinery has a fair value of $140,000. Record Peppers’ journal entry to recognize any loss that needs to be recognized for impairment. (b) Dillman Corporation owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $195,000. The machinery has a fair value of $150,000....
9. Jones Corporation owns machinery with a book value of $860,000. It is estimated that the...
9. Jones Corporation owns machinery with a book value of $860,000. It is estimated that the machinery will generate future cash flows of $990,000. The machinery has a fair value of $840,000. Jones should recognize a loss on impairment of 10. Queen Corporation owns machinery with a book value of $320,000. It is estimated that the machinery will generate future cash flows of $250,000. The machinery has a fair value of $260,000. Queen should recognize a loss on impairment of
Bramble Corp. owns machinery with a book value of $750000. It is estimated that the machinery...
Bramble Corp. owns machinery with a book value of $750000. It is estimated that the machinery will generate future cash flows of $712000. The machinery has a fair value of $551000. Bramble should recognize a loss on impairment of:
Concord Corporation owns machinery with a book value of $751000. It is estimated that the machinery...
Concord Corporation owns machinery with a book value of $751000. It is estimated that the machinery will generate future cash flows of $711000. The machinery has a fair value of $561000. Concord should recognize a loss on impairment of $40000. $190000. $150000. $ -0-.
Coronado Company owns equipment that cost $1,008,000 and has accumulated depreciation of $425,600. The expected future...
Coronado Company owns equipment that cost $1,008,000 and has accumulated depreciation of $425,600. The expected future net cash flows from the use of the asset are expected to be $560,000. The fair value of the equipment is $448,000. Prepare the journal entry, if any, to record the impairment loss.
The following information is available for Blossom Company's patents: $2790000 1270000 Cost Carrying amount Expected future...
The following information is available for Blossom Company's patents: $2790000 1270000 Cost Carrying amount Expected future net cash flows Fair value 963000 975000 Blossom would record a loss on impairment of $1270000. $307000. $1827000. $295000.
Splish Company owns equipment that cost $1,116,000 and has accumulated depreciation of $471,200. The expected future...
Splish Company owns equipment that cost $1,116,000 and has accumulated depreciation of $471,200. The expected future net cash flows from the use of the asset are expected to be $620,000. The fair value of the equipment is $496,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent...
An impairment loss must be recognized when... A) The present value of the asset's future cash flows is higher than the a...
An impairment loss must be recognized when... A) The present value of the asset's future cash flows is higher than the asset's fair value B) The present value of the asset's future cash flows is lower than the asset's fair value C) An asset's book value is lower than its fair value D) An asset's book value is higher than its fair value
12. Brother Corp bought a patent on Mar 1. 2013 for $24,000. The patent is expected...
12. Brother Corp bought a patent on Mar 1. 2013 for $24,000. The patent is expected to have a useful life of 10 years and no salvage value. If on Dec 31, 2015 when the book value of Brother's patent is $17,200, Brother determines the undiscounted future cash flows the patent will provide is $18,000, discounted future cash flows are $16,500, and the fair value of the patent is $13,000, what is the entry to record patent impairment? a. Loss...
Sunland Corporation owns a patent that has a carrying amount of $648,000. Sunland expects future net...
Sunland Corporation owns a patent that has a carrying amount of
$648,000. Sunland expects future net cash flows from this patent to
total $405,000. The fair value of the patent is $502,200.
Prepare journal entry, if necessary, to record the loss on
impairment. (Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
9. Jones Corporation owns machinery with a book value of $860,000. It is estimated that the machinery will generate future cash flows of $990,000. The machinery has a fair value of $840,000. Jones should recognize a loss on impairment of 10. Queen Corporation owns machinery with a book value of $320,000. It is estimated that the machinery will generate future cash flows of $250,000. The machinery has a fair value of $260,000. Queen should recognize a loss on impairment of
The following information is available for Blossom Company's patents: $2790000 1270000 Cost Carrying amount Expected future net cash flows Fair value 963000 975000 Blossom would record a loss on impairment of $1270000. $307000. $1827000. $295000.
12. Brother Corp bought a patent on Mar 1. 2013 for $24,000. The patent is expected to have a useful life of 10 years and no salvage value. If on Dec 31, 2015 when the book value of Brother's patent is $17,200, Brother determines the undiscounted future cash flows the patent will provide is $18,000, discounted future cash flows are $16,500, and the fair value of the patent is $13,000, what is the entry to record patent impairment? a. Loss...
Sunland Corporation owns a patent that has a carrying amount of
$648,000. Sunland expects future net cash flows from this patent to
total $405,000. The fair value of the patent is $502,200.
Prepare journal entry, if necessary, to record the loss on
impairment. (Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
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