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Ayayai Corporation owns a patent that has a carrying amount of $250,000. Ayayai expects future net...
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
At the end of 2017, Ayayai Corporation owns a licence with a remaining life of 11 years and a car...
At the end of 2017, Ayayai Corporation owns a licence with a remaining life of 11 years and a carrying amount of $505,000. Ayayai expects undiscounted future cash flows from this licence to total $509,900. The licence's fair value is $400,600 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $453,100. Ayayai prepares financial statements in accordance with ASPE. Determine if the licence is impaired at the...
Jurassic Company owns machinery that cost $900,000 and has accumulated depreciation of $380,000. The expected future...
Jurassic Company owns machinery that cost $900,000 and has accumulated depreciation of $380,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair value of the machinery is $400,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent...
explanation very appreciated Marigold Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200....
explanation very appreciated
Marigold Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200. The expected future net cash flows from the use of the asset are expected to be $520,000. The fair value of the equipment is $416,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered....
Ayayai Corporation purchased Kingbird Company 3 years ago and at that time recorded goodwill of $300,000....
Ayayai Corporation purchased Kingbird Company 3 years ago and at that time recorded goodwill of $300,000. The Kingbird Division’s net assets, including the goodwill, have a carrying amount of $650,000. The fair value of the division is estimated to be $590,000. Prepare Ayayais' journal entry, if necessary, to record impairment of the goodwill. (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...
Presented below is information related to copyrights owned by Sunland Company at December 31, 2020. Cost Carrying amoun...
Presented below is information related to copyrights owned by Sunland Company at December 31, 2020. Cost Carrying amount Expected future net cash flows Fair value $8,520,000 4,470,000 4,020,000 3,450,000 Assume that Sunland Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not use...
Splish Company owns equipment that cost $1,116,000 and has accumulated depreciation of $471,200. The expected future...
Splish Company owns equipment that cost $1,116,000 and has accumulated depreciation of $471,200. The expected future net cash flows from the use of the asset are expected to be $620,000. The fair value of the equipment is $496,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent...
On January 1, 2020, Ayayai Corporation granted 5,100 options to executives. Each option entitles the holder...
On January 1, 2020, Ayayai Corporation granted 5,100 options to executives. Each option entitles the holder to purchase one share of Ayayai's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $70 per share on the date of grant. The fair value of the options at the grant date is $143,000. The period of benefit is 2 years. Prepare Ayayai's journal entries for January 1,...
On July 1, 2020, Ayayai Corporation purchased Young Company by paying $251,000 cash and issuing a...
On July 1, 2020, Ayayai Corporation purchased Young Company by paying $251,000 cash and issuing a $100,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash $50,000 Accounts payable $202,000 Accounts receivable 89,500 Stockholders' equity 232,500 Inventory 100,000 $434,500 Land 40,000 Buildings (net) 74,500 Equipment (net) 69,500 Trademarks 11,000 $434,500 The recorded amounts all approximate current values except for land (fair value of $60,000), inventory (fair value of $124,000), and...
Flint Company has a 12% note payable with a carrying value of $16,000. Flint applies the...
Flint Company has a 12% note payable with a carrying value of
$16,000. Flint applies the fair value option to this note. Given an
increase in market interest rates, the fair value of the note is
$17,850.
Prepare the entry to record the fair value option for this
note, assuming no change in credit risk. (If no entry
is required, select "No entry" for the account titles and enter 0
for the amounts. Credit account titles are automatically indented
when...
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
At the end of 2017, Ayayai Corporation owns a licence with a remaining life of 11 years and a carrying amount of $505,000. Ayayai expects undiscounted future cash flows from this licence to total $509,900. The licence's fair value is $400,600 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $453,100. Ayayai prepares financial statements in accordance with ASPE. Determine if the licence is impaired at the...
explanation very appreciated
Marigold Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200. The expected future net cash flows from the use of the asset are expected to be $520,000. The fair value of the equipment is $416,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered....
Presented below is information related to copyrights owned by Sunland Company at December 31, 2020. Cost Carrying amount Expected future net cash flows Fair value $8,520,000 4,470,000 4,020,000 3,450,000 Assume that Sunland Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not use...
On January 1, 2020, Ayayai Corporation granted 5,100 options to executives. Each option entitles the holder to purchase one share of Ayayai's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $70 per share on the date of grant. The fair value of the options at the grant date is $143,000. The period of benefit is 2 years. Prepare Ayayai's journal entries for January 1,...
On July 1, 2020, Ayayai Corporation purchased Young Company by paying $251,000 cash and issuing a $100,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash $50,000 Accounts payable $202,000 Accounts receivable 89,500 Stockholders' equity 232,500 Inventory 100,000 $434,500 Land 40,000 Buildings (net) 74,500 Equipment (net) 69,500 Trademarks 11,000 $434,500 The recorded amounts all approximate current values except for land (fair value of $60,000), inventory (fair value of $124,000), and...
Flint Company has a 12% note payable with a carrying value of
$16,000. Flint applies the fair value option to this note. Given an
increase in market interest rates, the fair value of the note is
$17,850.
Prepare the entry to record the fair value option for this
note, assuming no change in credit risk. (If no entry
is required, select "No entry" for the account titles and enter 0
for the amounts. Credit account titles are automatically indented
when...
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