Under IFRS, if an asset’s recoverable amount was $2 million, while its carrying amount was $1...
Under IFRS, if an asset’s recoverable amount was $2 million, while its carrying amount was $1 million, then a firm would:(5 Points)
a. Record an impairment loss of $1 million.
b. Revalue the asset to $2 million.
c. Not record any transaction.
d. Record an impairment gain of $1 million.
e. Choose either $2 or $1 million in asset value that provides the best tax advantage
Homework Answers
In this case, the recoverable amount is more than the carrying value then the difference between the two is treated as the Impaired gain. So, The Option D is the correct answer.
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Under IFRS, if an asset’s recoverable amount was $2 million,
while its carrying amount was $1...
Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S....
Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP, both, or neither. A company takes out a loan to finance the construction of a building that will be used by the company. The interest on the loan is capitalized as part of the cost of the building. Inventory is reported on the balance sheet using the last-in, first-out (LIFO) cost flow assumption. ,The gain on a sale and leaseback transaction classified as...
X Record the entry to write the depreciable assets down to their carrying value in their...
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Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land,...
Drabinski Ltd. decided on 1 July 20X3 to dispose of an
asset group consisting of land, a building, and equipment. An
active plan of disposal is being carried out, and sale is highly
probable within the following year. The assets’ carrying values and
estimated recoverable amounts at 1 July 20X3 are as follows:
Cost/ Carrying Value/Estimated Recoverable Amount/
Land $400,000 $400,000 $420,000
Building 2,700,000 1,500,000 900,000
Equipment 900,000 400,000 300,000
TOTAL $4,000,000 $2,300,000 $1,620,000
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hi there, here there is my question and answer. I was wondering can you help me...
hi there, here there is my question and answer. I was
wondering can you help me to verify whether answer is correct or
not if there are some errors in ky answers please clarify it
ACC1207 Case 3 30 Marks Answer all cases. Each case is worth 10 marks (a) Sullivan Company acquired a depreciable asset on 1 July 2015 for $500 000. The asset was estimated to have a useful life of 10 years and was depreciated on a...
37. Indicate whether each of the following describes an accounting treatment that is acceptable u...
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Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP, both, or neither. A company takes out a loan to finance the construction of a building that will be used by the company. The interest on the loan is capitalized as part of the cost of the building. Inventory is reported on the balance sheet using the last-in, first-out (LIFO) cost flow assumption. ,The gain on a sale and leaseback transaction classified as...
X Record the entry to write the depreciable assets down to their carrying value in their respective asset accounts. 1 Record entry to reclassify the assets with loss or gain, if 2 any Record the current value of assets. Record the sale of the disposal group 4 Note: journal entry has been entered Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land, a building, and equipment. An active plan of disposal is being...
Drabinski Ltd. decided on 1 July 20X3 to dispose of an
asset group consisting of land, a building, and equipment. An
active plan of disposal is being carried out, and sale is highly
probable within the following year. The assets’ carrying values and
estimated recoverable amounts at 1 July 20X3 are as follows:
Cost/ Carrying Value/Estimated Recoverable Amount/
Land $400,000 $400,000 $420,000
Building 2,700,000 1,500,000 900,000
Equipment 900,000 400,000 300,000
TOTAL $4,000,000 $2,300,000 $1,620,000
On 31 December 20X3, the net recoverable amount of the group is...
hi there, here there is my question and answer. I was
wondering can you help me to verify whether answer is correct or
not if there are some errors in ky answers please clarify it
ACC1207 Case 3 30 Marks Answer all cases. Each case is worth 10 marks (a) Sullivan Company acquired a depreciable asset on 1 July 2015 for $500 000. The asset was estimated to have a useful life of 10 years and was depreciated on a...
37. Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP. both, or neither, by checking the appropriate box. Page 153 Acceptable Under . A company takes out a loan to finance the construction of a building that will be used by IFRS U.S. GAAP Both Neither the company. The interest on the loan is capitalized as part of the cost of the building. Inventory is reported on the balance sheet using the...
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