Homework Answers
| 12 | e. | No entry is needed to record impairment. |
| In case
of intangible asset with a finite life. Impairment is recognised when, Carrying amount of the asset exceeds the undsicounted cash flows expected to result from the use of the asset. |
||
| Hence, under the current scenerio, Carrying amount of asset is 17,200 and undiscounted cashflow value is 18000. | ||
| Hence, there is no impairment | ||
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12. Brother Corp bought a patent on Mar 1. 2013 for $24,000. The patent is expected...
Please help!! Thank you! 1: Data Table Plant and Equipment Asset Group Cost 4,230,000 (2,115,000) Less:...
Please help!! Thank you!
1: Data Table Plant and Equipment Asset Group Cost 4,230,000 (2,115,000) Less: Accumulated Depreciation/Amortization 2,115,000 Carrying value Future cash flows (occurring at the end of each year) Remaining Life Year $ 2019 2020 2021 2022 2023 640,000 500,000 389,000 2024 1,529,000 Total undiscounted future cash flows || on 1,399,071 Total discounted future cash flows at 5% llel 1,236,000 Fair value 1. On December 31, 2018, Upton Enterprises must measure its impairment loss for plant and equipment....
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
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General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand...
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General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information for t
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General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand...
General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: Cost $ 44,500,000 Accumulated depreciation 15,400,000 General’s estimate of the total cash flows to be generated by selling the products manufactured at its Arizona plant, not discounted to present value 17,400,000 The fair value of the Arizona plant...
Requirement 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. (Record d...
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Please help!! Thank you!
1: Data Table Plant and Equipment Asset Group Cost 4,230,000 (2,115,000) Less: Accumulated Depreciation/Amortization 2,115,000 Carrying value Future cash flows (occurring at the end of each year) Remaining Life Year $ 2019 2020 2021 2022 2023 640,000 500,000 389,000 2024 1,529,000 Total undiscounted future cash flows || on 1,399,071 Total discounted future cash flows at 5% llel 1,236,000 Fair value 1. On December 31, 2018, Upton Enterprises must measure its impairment loss for plant and equipment....
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
Ayayai Corporation owns a patent that has a carrying amount of $250,000. Ayayai expects future net cash flows from this patent to total $200,000. The fair value of the patent is $130,000. Prepare Ayayai's journal entry to record the loss on impairment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
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