Cash 40,000 Loss on Sale 10,000 Accumulated Depreciation &nbs
|
Cash |
40,000 |
|
|
Loss on Sale |
10,000 |
|
|
Accumulated Depreciation |
250,000 |
|
|
Machine |
300,000 |
Question: Why is this not an impairment loss? When does an impairment loss apply? I am not asking about the technical details about how to calculate the impairment loss. I am just looking for a brief explanation (in one or two sentences) about the basic difference between an impairment loss scenario and the scenario described above?
Homework Answers
In the given scenario, there is a debit to cash account which denotes that cash has been received in the transaction thereby indicating a sale of asset.
In case of an impairment loss there would be no cash account involved. The debit in case of impairment would be to loss on impairment account and accumulated depreciation account with credit to the asset account.
Thus, the basic difference between an impairment loss scenario and the one described is the existence of cash account.
Cash - 40,000 - Loss on Sale 10,000 Accumulated Depreciation - 250.000 - Machine - 300,000...
Cash - 40,000 - Loss on Sale 10,000 Accumulated Depreciation - 250.000 - Machine - 300,000 - Question: Why is this not an impairment loss? When does an impairment loss apply? I am not asking about the technical details about how to calculate the impairment loss. I am just looking for a brief explanation in one or two sentences) about the basic difference between an impairment loss scenario and the scenario described above?
Recall from assignment TVM3DEF that when we sold our machine at the end of its useful...
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can you please check if i am correct please thank you Comparative Balance Sheet December 31,...
can
you please check if i am correct please thank you
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Refer to the following financial statements
and answer the following questions
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13. cash provided (used) by operating activities, investing
activities, and financing activities. 14. cash-based net income.
15. estimate of uncollectible accounts receivable. 16. calculate
and interpret accounts receivable ratio (most recent and prior
period).
hints:-
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Cash - 40,000 - Loss on Sale 10,000 Accumulated Depreciation - 250.000 - Machine - 300,000 - Question: Why is this not an impairment loss? When does an impairment loss apply? I am not asking about the technical details about how to calculate the impairment loss. I am just looking for a brief explanation in one or two sentences) about the basic difference between an impairment loss scenario and the scenario described above?
Recall from assignment TVM3DEF that when we sold our machine at the end of its useful life we recorded a loss of $10,000 (difference between the selling price of $40,000 and book value of $50,000). Some students incorrectly called this an impairment loss. The correct entry is Cash 40,000 Loss on Sale 10,000 Accumulated Depreciation 250,000 Machine 300,000 Question: Why is this not an impairment loss? When does an impairment loss apply? I am not asking about the technical details...
can
you please check if i am correct please thank you
Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Assets Current Assets: Cash Accounts Receivable, Net Inventory (sunglasses) Prepaid Insurance Prepaid Rent Total Current Assets S $ $ $ $ $ 90,000 130,000 135,000 25,000 $ $ $ $ $ S 70,000 90,000 80,000 20,000 12,000 272,000 380,000 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment Total Assets $ S $...
Solve question 1 of P10-9
Standard Costs and Variances Santiago was shocked to see the loss for the month particularly because sales were exactly eted. He stated, "I sure hope the plant has a standard cost system in oration. If it doesn't have the slightest idea of where to start looking for the problem." he plant does use a standard cost system, with the following standard variable cost per impot T Standard Quantity or Hours Standard Price or Rate Standard...
pick 1 of the five things you should know about capital gains
tax, and give a pro or con point of view on the artical.
Paragraph Styles 6 5 Things You Should Know about Capital Gains Tax Updated for Tax Year 2019 OVERVIEW A capital gain occurs when you sell something for more than you spent to acquire it. This happens a lot with investments, but it also applies to personal property, such as a car. Every taxpayer should understand...
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RBB RETAILING CORPORATION Statement of Comprehensive Income For the year ended December 31, 2020 Net sales Less: Cost of sales 3,380,000 2,566,000 Gross profit 814,000 Less: Operating expenses Selling expenses General and administrative expenses Income before income tax 260,500 352,200 612.700 201,300 Less: Income tax expense 60,390 Net profit 140,910 Included under General and Administrative Expenses...
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and answer the following questions
hints:-
13. cash provided (used) by operating activities, investing
activities, and financing activities. 14. cash-based net income.
15. estimate of uncollectible accounts receivable. 16. calculate
and interpret accounts receivable ratio (most recent and prior
period).
hints:-
2:12 PM Wed Apr 15 39%). A 51.04cdn.com PART II NIKE, Inc. Consolidated Statements of Income in mWors, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead...
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