Hirsch Company acquired equipment at the beginning of 2020 at a cost of $135,900. The equipment has a six-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2020, Hirsch compiled the following information
Hirsch Company acquired equipment at the beginning of 2020 at a cost of $135,900. The equipment has a six-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2020, Hirsch compiled the following information related to this equipment:
| Expected future cash flows from use of the equipment | $ | 117,200 | |
| Present value of expected future cash flows from use of the equipment | 102,400 | ||
| Fair value (selling price less costs to dispose) | 98,300 | ||
Assume that Hirsch Company is a U.S.-based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.
Required:
Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS.
Prepare the entry(ies) that Hirsch would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2021.
Homework Answers
Request Answer!
We need at least 8 more requests to produce the answer.
2 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
Hirsch Company acquired equipment at the beginning of 2020 at a cost of $135,900. The equipment has a six-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2020, Hirsch compiled the following information
Parnell Company acquired construction equipment on January 1, 2017, at a cost of $71,600. The equipment...
Parnell Company acquired construction equipment on January 1, 2017, at a cost of $71,600. The equipment was expected to have a useful life of five years and a residual value of $12,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $66,700, a salvage value of $12,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under...
Parnell Company acquired construction equipment on January 1, 2017, at a cost of $72,000. The equipment...
Parnell Company acquired construction equipment on January 1, 2017, at a cost of $72,000. The equipment was expected to have a useful life of six years and a residual value of $15,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $65,100, a salvage value of $15,000, and a remaining useful life of five years. In measuring property, plant, and equipment subsequent to acquisition under...
Parnell Company acquired construction equipment on January 1, 2017, at a cost of $79,200. The equipment...
Parnell Company acquired construction equipment on January 1, 2017, at a cost of $79,200. The equipment was expected to have a useful life of five years and a residual value of $13,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $75,700, a salvage value of $13,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under...
Presented below is information related to equipment owned by Blue Company at December 31, 2020. Cost...
Presented below is information related to equipment owned by Blue Company at December 31, 2020. Cost $10,980,000 Accumulated depreciation to date 1,220,000 Expected future net cash flows 8,540,000 Fair value 5,856,000 Blue intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the...
Presented below is information related to equipment owned by Davis Company at December 31, 2020. Cost...
Presented below is information related to equipment owned by Davis Company at December 31, 2020. Cost $6,750,000 Accumulated depreciation to date 750,000 Expected future net cash flows 5,250,000 Fair value 3,600,000 Assume that Davis will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Assume the same information as above, except that Davis intends to dispose of the equipment in the coming year. Instructions (a) Prepare...
CH11Question5 Parnell Company acquired construction equipment on January 1, 2017, at a cost of $72,000. The...
CH11Question5
Parnell Company acquired construction equipment on January 1,
2017, at a cost of $72,000. The equipment was expected to have a
useful life of four years and a residual value of $11,000 and is
being depreciated on a straight-line basis. On January 1, 2018, the
equipment was appraised and determined to have a fair value of
$67,100, a salvage value of $11,000, and a remaining useful life of
three years. In measuring property, plant, and equipment subsequent
to acquisition...
Mikkeli OY acquired a brand name with an indefinite life in 2015 for 43,800 markkas. At...
Mikkeli OY acquired a brand name with an indefinite life in 2015 for 43,800 markkas. At December 31, 2017, the brand name could be sold for 37,200 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 46,000 markkas, and the present value of this amount is 36,200 markkas. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP...
Mikkeli OY acquired a brand name with an indefinite life in 2015 for 44,000 markkas. At...
Mikkeli OY acquired a brand name with an indefinite life in 2015 for 44,000 markkas. At December 31, 2017, the brand name could be sold for 35,300 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 46,200 markkas, and the present value of this amount is 34,300 markkas. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP...
Presented below is information related to equipment owned by Whispering Company at December 31, 2020.
Presented below is information related to equipment owned by Whispering Company at December 31, 2020. Cost$9,990,000Accumulated depreciation to date 1,110,000Expected future net cash flows 7,770,000Fair value 5,328,000Whispering intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22.200. As of December 31, 2020, the equipment has a remaining useful life of 4 years.Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020.Prepare the journal entry (if any)...
Problem 11-22 (LO 11-9) Mikkeli OY acquired a brand name with an indefinite life in 2015...
Problem 11-22 (LO 11-9) Mikkeli OY acquired a brand name with an indefinite life in 2015 for 45,400 markkas. At December 31, 2017, the brand name could be sold for 36,100 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 47,600 markkas, and the present value of this amount is 35,100 markkas. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be...
CH11Question5
Parnell Company acquired construction equipment on January 1,
2017, at a cost of $72,000. The equipment was expected to have a
useful life of four years and a residual value of $11,000 and is
being depreciated on a straight-line basis. On January 1, 2018, the
equipment was appraised and determined to have a fair value of
$67,100, a salvage value of $11,000, and a remaining useful life of
three years. In measuring property, plant, and equipment subsequent
to acquisition...
Most questions answered within 3 hours.
-
A solid, uniform disk of radius 0.250 m and mass 53.7 kg rolls
down a ramp...
asked 35 minutes ago -
Given the following table of high speed internet access vs.
annual home income:
Home Income
%...
asked 1 hour ago -
A baseball batter hits a 0.145kg baseball straight up into the
air. The baseball leaves the...
asked 1 hour ago -
An FM modulator is tested using
single-tone baseband signal with frequency of 50kHz and a sprectrum...
asked 1 hour ago -
Write the ionic equations for the first stage of salts
hydrolysis.
Anion, Cation?
Na2S
NiSO4
K2SO4...
asked 3 hours ago -
suppose there is a normally distributed population with a mean of
250 and a standard deviation...
asked 4 hours ago -
Question Three
Suppose you as project manager are using the Waterfall
development methodology on a large...
asked 5 hours ago -
Which statement is not true about welfare in Canada?
A.Benefits typically vary based on one's ability...
asked 5 hours ago -
Please help me with FLOWCHART and UML diagram for class,
thank you!
#include <iostream>
#include <fstream>...
asked 6 hours ago -
3. Describe the “logic circuit” of the Lac operon. Which
proteins are bound or not to...
asked 6 hours ago -
Ayesha’s adjusted gross income is $60,000 in 2019. She donated a
piece of artwork with a...
asked 6 hours ago -
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 6 hours ago