Homework Answers
Solution to Q1. As their is a commercial substance in the transaction so the asset must be recorded at the Fair value of such taken up asset. So,the machine would be recorded at $ 1161000
Solution to Q2. Total impairment loss = Fv at the year end - carrying t at the end of year = 5490000 - 4789000 = $ 701,000. Such loss would be entirely adjusted against goodwill first . So, the amt of loss in impairment of goodwill = $ 701,000
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A machine cost $1032000, has annual depreciation of $172000, and has accumulated depreciation of $817000 on...
Carla Vista Corporation acquired End-of-the-World Products on January 1, 2020 for $6150000, and recorded goodwill of...
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A machine cost $1512000, has annual depreciation of $252000, and has accumulated depreciation of $1197000 on...
A machine cost $1512000, has annual depreciation of $252000, and has accumulated depreciation of $1197000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $346500, it is exchanged for a machine with a fair value of $1701000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at
A machine cost $1080000, has annual depreciation of $180000, and has accumulated depreciation of $855000 on...
A machine cost $1080000, has annual depreciation of $180000, and has accumulated depreciation of $855000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $247500, it is exchanged for a machine with a fair value of $1215000 and the proper amount of cash is paid. The exchange had commercial substance The gain to be recorded on the exchange is $0 $67500 $135000 $45000
Sheridan Corporation acquired End-of-the-World Products on January 1, 2017 for $6650000, and recorded goodwill of $1250000...
Sheridan Corporation acquired End-of-the-World Products on
January 1, 2017 for $6650000, and recorded goodwill of $1250000 as
a result of that purchase. At December 31, 2018, the
End-of-the-World Products Division had a fair value of $5690000.
The net identifiable assets of the Division (excluding goodwill)
had a fair value of $4985000 at that time. What amount of loss on
impairment of goodwill should Sheridan record in 2018?
$0
$545000
$415000
$960000
Sheridan Corporation acquired End-of-the-World Products on January 1, 2017 for $5650000, and recorded goodwill of $...
Sheridan Corporation acquired End-of-the-World Products on January 1, 2017 for $5650000, and recorded goodwill of $1250000 as a result of that purchase. At December 31, 2018, the End-of- the World Products Division had a fair value of $5690000. The net identifiable assets of the Division (excluding goodwill had a fair value of $4985000 at that time. What amount of loss on impairment of goodwill should Sheridan record in 2018? 30 3545000 $415000 $960000
A machine cost $228,600, has annual depreciation expense of $45,720, and has accumulated depreciation of $114,300...
A machine cost $228,600, has annual depreciation expense of $45,720, and has accumulated depreciation of $114,300 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $89,470, it is exchanged for a similar machine with a fair value of $280,700 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2021. (Credit account titles are automatically indented when the amount is entered....
A machine cost $255,200, has annual depreciation expense of $51,040, and has accumulated depreciation of $127,600...
A machine cost $255,200, has annual depreciation expense of $51,040, and has accumulated depreciation of $127,600 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $102,490, it is exchanged for a similar machine with a fair value of $286,500 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2021. (Credit account titles are automatically indented when the amount is entered....
1. The following information is available for a Gables Enterprise's machinery: Cost $ 283,000,000 Accumulated depreciation...
1. The following information is available for a Gables Enterprise's machinery: Cost $ 283,000,000 Accumulated depreciation 133,000,000 Estimate of the total cash flows 110,000,000 Present value of estimated future cash flows 94,000,000 Estimated fair value determined by appraisal 140,000,000 1 What is the impairment loss that Gables would report at December 31 a. $40,000 b$ 16,000 c. $56,000 d. $10,000 2. In 2017, Ana Inc, had acquired Demski Co and recorded goodwill of $245 million as a result. The net...
Ex. 10-134-Nonmonetary exchange cost $140,000, has annual depreciation A machine expense of $28,000, and has accumulated...
Ex. 10-134-Nonmonetary exchange cost $140,000, has annual depreciation A machine expense of $28,000, and has accumulated depreciation of $70,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $56,000, it is exchanged for a similar machine with a fair value of $168,0000 and the proper amount of cash is paid. The exchange lacked commercial substance. Instructions Prepare all entries that are necessary at April 1, 2013
Ex. 10-134-Nonmonetary exchange. A machine cost $140,000, has annual depreciation expense of $28,000, and has accumulated...
Ex. 10-134-Nonmonetary exchange. A machine cost $140,000, has annual depreciation expense of $28,000, and has accumulated depreciation of $70,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $56,000, it is exchanged for a similar machine with a fair value of $168,000 and the proper amount of cash is paid. The exchange lacked commercial substance. Instructions Prepare all entries that are necessary at April 1, 2013.
A machine cost $1080000, has annual depreciation of $180000, and has accumulated depreciation of $855000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $247500, it is exchanged for a machine with a fair value of $1215000 and the proper amount of cash is paid. The exchange had commercial substance The gain to be recorded on the exchange is $0 $67500 $135000 $45000
Sheridan Corporation acquired End-of-the-World Products on
January 1, 2017 for $6650000, and recorded goodwill of $1250000 as
a result of that purchase. At December 31, 2018, the
End-of-the-World Products Division had a fair value of $5690000.
The net identifiable assets of the Division (excluding goodwill)
had a fair value of $4985000 at that time. What amount of loss on
impairment of goodwill should Sheridan record in 2018?
$0
$545000
$415000
$960000
Sheridan Corporation acquired End-of-the-World Products on January 1, 2017 for $5650000, and recorded goodwill of $1250000 as a result of that purchase. At December 31, 2018, the End-of- the World Products Division had a fair value of $5690000. The net identifiable assets of the Division (excluding goodwill had a fair value of $4985000 at that time. What amount of loss on impairment of goodwill should Sheridan record in 2018? 30 3545000 $415000 $960000
A machine cost $228,600, has annual depreciation expense of $45,720, and has accumulated depreciation of $114,300 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $89,470, it is exchanged for a similar machine with a fair value of $280,700 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2021. (Credit account titles are automatically indented when the amount is entered....
A machine cost $255,200, has annual depreciation expense of $51,040, and has accumulated depreciation of $127,600 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $102,490, it is exchanged for a similar machine with a fair value of $286,500 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2021. (Credit account titles are automatically indented when the amount is entered....
Ex. 10-134-Nonmonetary exchange cost $140,000, has annual depreciation A machine expense of $28,000, and has accumulated depreciation of $70,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $56,000, it is exchanged for a similar machine with a fair value of $168,0000 and the proper amount of cash is paid. The exchange lacked commercial substance. Instructions Prepare all entries that are necessary at April 1, 2013
Ex. 10-134-Nonmonetary exchange. A machine cost $140,000, has annual depreciation expense of $28,000, and has accumulated depreciation of $70,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $56,000, it is exchanged for a similar machine with a fair value of $168,000 and the proper amount of cash is paid. The exchange lacked commercial substance. Instructions Prepare all entries that are necessary at April 1, 2013.
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