Homework Answers
24. Answer is B - Would record an 8 million impairment loss on the equipment.
historical cost - 70
Accumulated Depreciation - 12
Fair value - 50
so that, Impairment loss will be 8 Million (70-12-50)
25. Answer is A - Development costs for software that has reached the point of technology feasibility.
26. Answer is D - Cost of Goods Sold
27. Answer is D - All of these Answer choices are true.
28. Answer is B - 20 Years
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Question 24 (1 point) Wilson Inc. owns equipment for which it paid $70 million. At the...
6 Fryer Inc. owns equipment for which it paid $90 million At the end of 2018,...
6 Fryer Inc. owns equipment for which it paid $90 million At the end of 2018, it had accumulated depreciation on the equipment of $27 million. Due to adverse economic conditions, Fryer's management determined that it should assess whether an impairment loss should be recognized for the equipment The estimated undiscounted future cash flows to be provided by the equipment total $60 million, and the equipment's fair value at that point is $40 million Under these circumstances, Fryer Would recoed...
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2. Harvester Inc. owns equipment for which it paid $100 million. At the end of 2006,...
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NA Question 9 (1 point) In 2017. Antle Inc. had acquired Demski Co. and recorded goodwill...
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Question 4 Cheyenne Corporation uses special strapping equipment in its packaging business. The e...
Question 4 Cheyenne Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $8.200 million and had an estimated useful life of 8 years with no residual value. In early April 2017, a part costing $717,500 and designed to increase the machinery’s efficiency was added. The machine’s estimated useful life did not change with this addition. By December 31, 2017, new technology had been introduced that would speed up the obsolescence of Cheyenne’s...
ACC206: Financial Reporting MCQ please help 1. According to FRS 16 Property, Plant and Equipment, gains...
ACC206: Financial Reporting MCQ please help 1. According to FRS 16 Property, Plant and Equipment, gains when selling property, plant and equipment for cash: a. are the excess of the cash proceeds over the fair value of the assets. b. are the excess of the book value of the assets over the cash proceeds. c. are part of cash flows from operations. d. None of the listed options. 2. At the end of its fiscal year, an adverse economic condition...
ACC206: Financial Accounting MCQ 2.0 1. HL Ltd purchased a high speed industrial equipment at a...
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6 Fryer Inc. owns equipment for which it paid $90 million At the end of 2018, it had accumulated depreciation on the equipment of $27 million. Due to adverse economic conditions, Fryer's management determined that it should assess whether an impairment loss should be recognized for the equipment The estimated undiscounted future cash flows to be provided by the equipment total $60 million, and the equipment's fair value at that point is $40 million Under these circumstances, Fryer Would recoed...
2. Harvester Inc. owns equipment for which it paid $100 million. At the end of 2006, it had accumulated depreciation charges on the equipment of $49 million. Due to adverse economic conditions, Harvester's management determined that it should assess whether an impairment should be recognized for the equipment. Assume that the estimated futu re cash flows (without discounting) to be provided by the equipment total $60 million, and its fair value at that point totals $55 million. In accordance with...
Question 20 (1 point) The fixed-asset turnover ratio provides COD The rate of decline in asset lives. The rate of replacement of fixed assets. The amount of sales generated per dollar of fixed assets. The decline in book value of fixed assets compared to capital expenditures. Question 21 (1 point) Maltese is a privately owned company. On September 3. Maltese exchanged 2.000 shares of its private common stock for equipment. There is no readily available estimate of the stock's fair...
Question 6 (1 point) Archie Co. purchased a framing machine for $45,000 on January 1, 2018. The machine is expected to have a four-year life, with a residual value of $5,000 at the end of four years. Using the straight-line method, depreciation for 2019 and book value at December 31. 2019, would be: $10,000 and $20,000. $10,000 and $25,000. $11,250 and $17.500. $11.250 and $22.500. Question 7 (1 point) In testing for recoverability of property, plant, and equipment, an impairment...
NA Question 9 (1 point) In 2017. Antle Inc. had acquired Demski Co. and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Antle's acquisition of Demski Co. had a 2018 year-end book value of $580 million. Antle assessed the fair value of Demski at this date to be $700 million, while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss...
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