2. On December 31, 2018, D Corp's machine has a carrying amount of $100,000. The fair...
2. On December 31, 2018, D Corp's machine has a carrying amount of $100,000. The fair value less selling cost of the machine is $90,000. The value-in-use of the machine is $103,000. Which of the following is true regarding impairment on December 31, 2018.
a. there is no impairment
b. there is a $3,000 impairment
c. there is a $10,000 impairment
d. there is a $13,000 impairment
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2. On December 31, 2018, D Corp's machine has a carrying amount
of $100,000. The fair...
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1, ABC Inc. has a machine that, as of December 31, 2018, has the following information: Cost: $10,800; Residual value: $1,800; Age: 2 years; Accumulated depreciation $6,000. Which of the following statements is correct? a. The useful life of the machine is 6 years. The annual depreciation is $1,500. b. The useful life of the machine is 3 years. The annual depreciation is $3,000. c. The useful life of the machine is 6 years. The annual depreciation is $3,000. d....
Question 12. A cash generating unit (CGU) comprises property with a carrying amount of $400,000, plant...
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Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is...
Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows: product total cost total replacement cost total net realizable value 101 $120,000 $100,000 $100,000 102 90,000 85,000 110,000 103 60,000 40,000 50,000 104 30,000 28,000 50,000 * The normal gross profit percentage is 25% of total cost 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products....
ILLUSTRATION 2 On January 1, 2009, a company acquired a piece of equipment for shs. 100,000....
ILLUSTRATION 2 On January 1, 2009, a company acquired a piece of equipment for shs. 100,000. It was decided that the equipment would be depreciated over ten years with zero salvage value. At December 31, 2012, the equipment has significantly decreased in value due to technological innovations in the industry in which the company operates. The current carrying value of the equipment is shs.60,000 (shs. 100,000 cost less shs.40,000 of accumulated depreciation). The expected future undiscounted cash flows from the...
Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is...
Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows: Product Total Cost Total Net Realizable Value 101 $ 120,000 $ 100,000 102 90,000 110,000 103 60,000 50,000 104 30,000 50,000 Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary...
A machine cost $1032000, has annual depreciation of $172000, and has accumulated depreciation of $817000 on...
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Innovative Inc. has a piece of equipment with a carrying amount of $176,500 Technology has changed, indicating that the machine may be impaired. A new machine with updated technology could be purchased for $351,000. A used machine of similar vintage is listed on-line for $161,000. The estimated discounted cash flows from continuing to use the asset are $149,000. The undiscounted cash flows from the use of the asset are $181,000. The estimated value if the company sold the asset less...
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