5. Innovative Inc. has a piece of equipment with a carrying amount of $175,000. Technology has...
Innovative Inc. has a piece of equipment with a carrying amount of $176,500 Technology has changed, indicating that the machine may be impaired. A new machine with updated technology could be purchased for $351,000. A used machine of similar vintage is listed on-line for $161,000. The estimated discounted cash flows from continuing to use the asset are $149,000. The undiscounted cash flows from the use of the asset are $181,000. The estimated value if the company sold the asset less...
Consider each of the following items: Cost of an oil change on the company’s truck. Cost of major brake replacement in a large piece of construction equipment that is expected to be completed every four years. Lawyers’ fees associated with a successful patent application. Lawyers’ fees associated with an unsuccessful patent application. Cost for the development of a website used exclusively to advertise new products. Cost of permits for building construction. Cost to demolish an old building that is on...
A company has an equipment that originally costs $2,000,000, and it has a current carrying amount of $1,200,000. A decrease in the demand has caused the company to reassess the future cash flows from using the machine. The company now estimates that it will receive cash flows of $160,000 per year for 12 years. The company uses a 10% discount rate to compute the present value for this investment. Compute the amount of impairment, if any.
ACC206: Financial Accounting MCQ 2.0 1. HL Ltd purchased a high speed industrial equipment at a cost of $420,000. Shipping costs totalled $15,000. Foundation work has to be done to house the equipment at HL Ltd’s premises and costs $8,000. An additional water line had to be run to the equipment at a cost of $3,000. Labour and testing costs totalled $6,000. Materials used up in testing cost $3,000. Under FRS 16 Property, Plant and Equipment , the capitalised cost...
Temple Inc. has equipment with a carrying amount of $800,000. The equipment’s fair value less costs to sell is $780,000, and its value-in-use is $815,000. The equipment is expected to be used in operations in the future. What amount should Temple Inc. report as an impairment to its equipment? $ Ludo Inc. acquires a patent for a drug with a remaining legal and useful life of six years on January 1, 2014 for $2,100,000. The company uses straight-line amortization for...
Required:
1. What is the amount of Apple’s accounts
receivable as of September 30, 2017?
2. Compute Apple’s accounts receivable turnover as
of September 30, 2017.
3. How long does it take, on average, for
the company to collect receivables for fiscal year ended September
30, 2017?
4. Apple’s most liquid assets include (a)
cash and cash equivalents, (b) short-term marketable
securities, (c) accounts receivable, and (d)
inventory. Compute the percentage that these liquid assets (in
total) make up of...
1) 1) Goods in transit are automatically included in inventory regardless of whether title has passed to the buyer. A) True B) False 2) 2) An advantage of FIFO is that it assigns the most recent costs to cost of goods sold, and does a better job of matching current costs with revenues on the income statement. A) True B) False 3) 3) Errors in the period-end inventory balance only affect the current period's records and financial statements. A) True...
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Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
How can we assess whether a project is a success or a
failure?
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...