Answer | ||||||
Reuirement 1 | 1) Book value of the plant and equipment, patent: | |||||
Particulars | Amount | Life in years | Yearly Depreciation | Dep for 3 years | Book value (2021) | |
Plant & Equipment | $ 143.00 | $ 10.00 | $ 14.30 | $ 42.90 | $ 100.10 | |
Patent | $ 33.00 | $ 5.00 | $ 6.60 | $ 19.80 | $ 13.20 |
Reuirement 4 | 4) Impairment Loss: | ||||||
Calculation of impairment loss for P&E, Patent: | |||||||
Particulars | Book Value @2021 | Sum of Undiscounted cash flows | Recoverable Test | Fair value | Impairment Loss | Balance | |
Plant & Equipment | $ 100 | $ 73 | Unrecoverable | $ 53 | $ 47 | $ 53 | |
Patent | $ 13 | $ 19 | Recoverable | $ - | $ - | $ 13 |
Calculation of impairment loss for Goodwill: | |
Fair value of Ellison Tech Corp. | $ 373 |
Book Value of Ellison Tech Corp. | $ 400 |
Impaired | Yes |
Fair value of Ellison Tech Corp. | $ 373 |
Less: Fair Value of Assets | $ 320 |
Good will fair value | $ 53 |
Impairment loss of Goodwill ($120-$53) | $67 |
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $530 million. In addition...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $650 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $ 155 million Patent 45 million Goodwill 120 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $510 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) Patent Goodwill $141 million 31 million 110 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $610 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $ 151 million Patent 41 million Goodwill 110 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $560 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $ 146 million Patent 36 million Goodwill 120 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $700 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $160 million Patent 50 million Goodwill 110 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $650 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $155 million 45 million Patent Goodwill 120 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $700 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) Patent Goodwill $ 160 million 50 million 110 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $650 million. In addition to cash, receivables, and Inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) Patent Goodwill $ 155 million 45 million 120 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and...
You are the controller of Metatec Inc. At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $600 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: In Millions Palant and equipment (depreciable assets) $ 150 Patent $ 40 Goodwill $ 100 The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have...
Hello, I am requesting assistance with the following problem. Required 4 is where I am having the problem. Can you please provide an explanation for the correct answer? Thank you. At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $690 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) Patent Goodwill $ 159 million 49 million 100 million The plant and equipment are...