a) | Case 1 | Case 2 | Case 3 |
Carrying Value = Cost - Accumulated Depreciation | $ 46,000.00 | $ 44,000.00 | $ 1,30,000.00 |
Fair value less costs to sell | $ 43,500.00 | $ 29,000.00 | $ 1,33,000.00 |
Decrease in value (impairment loss recongnized) | $ 2,500.00 | $ 15,000.00 | $ -3,000.00 |
If carrying amount > ‘fair value less costs to sell’ recognise an ‘impairment loss’ (expense) , Case 1 and Case 2 is impairment loss |
|||
b) Journal (case 1) | |||
Impairment loss (expens) | $ 2,500.00 | ||
Plant: accumulated impairment loss | $ 2,500.00 | ||
Journal (case 2) | |||
Impairment loss (expens) | $ 15,000.00 | ||
Plant: accumulated impairment loss | $ 15,000.00 |
a) | Case 1 | Case 2 | Case 3 |
Carrying Value = Cost - Accumulated Depreciation | =96000-50000 | =45000-1000 | =280000-150000 |
Fair value less costs to sell | =45000-1500 | =30000-1000 | =140000-7000 |
Decrease in value (impairment loss recongnized) | =B2-B3 | =C2-C3 | =D2-D3 |
If carrying amount > ‘fair value less costs to sell’ recognise an ‘impairment loss’ (expense) , Case 1 and Case 2 is impairment loss |
|||
b) Journal (case 1) | |||
Impairment loss (expens) | =B4 | ||
Plant: accumulated impairment loss | =B8 | ||
Journal (case 2) | |||
Impairment loss (expens) | =C4 | ||
Plant: accumulated impairment loss | =B12 |
Three cases are provided below concerning a plant asset currently held for sale. Exercise 12-77 Recording...
Recording Impairment Loss on Asset Held for Sale Three cases are provided below concerning a plant asset currently held for sale. Accumulated Case Original Cost Depreciation Fair Value Selling Costs $192,000 $100,000 $90,000 $3,000 90,000 2,000 60,000 2,000 560,000 300,000 280,000 14,000 3 a. Which cases(s), if any, require an impairment loss to be recognized, and for what amount? Note: If the asset is not impaired, enter a zero (or leave blank) for the loss. Note: Do not add any...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value $24,000 $36,000 $27,000 27,000 39,000 24,000 36,000 24,000 18,000 А B С Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave blank)...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value $24,000 $36,000 $27,000 27,000 39,000 24,000 с 36,000 24,000 18,000 A B Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave blank)...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value A $24,000 $36,000 $27,000 27,000 39,000 24,000 36,000 24,000 18,000 B с C Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave...
Recording Impairment Loss on Asset Held for Sale Down Manufacturing Company has a small facility called Plant XT that has not been used for several years because of low product demand. The company does not expect to use the facility in the foreseeable future. Efforts are being made to sell the plant for $700,000, but a realistic recovery amount is $400,000 (net of disposal costs). The accounting records show cost, $2,900,000; accumulated depreciation, $1,600,000. Required a. Provide the entry that...
Exercise 18.7 will heseno cery and in 2002 Recording the sale of plant and equipment Pro Comune che con 12.000 Depreciation wing. halosen on the truck up to four who was for I. Ghe thermal cry forced the 2. Auame, decal that the makis 3:20. Give the journal erary recorded Recording asset tradision. Exercise 18.7 Objective 184 Property. Plant, and Equipment CHAPTER 18 651 Exercise 18.3 Objective 18-2 Exercise 18.4 Objective 18-2 Exercise 18.5 Objective 18-2 Exercise 18.6 Objective 18-3...
- Complete the specific consolidation entries related to the Additional Information items #2 and #3 ONLY. One is a land transfer, and the other is a depreciable asset transfer. (not the whole consolidation) Prime Company holds 80 percent of Suspect Company's stock, acquired on January 1, 20X2, for $160,000. On the acquisition date, the fair value of the noncontrolling interest was $40,000. Suspect reported retained earnings of S50,000 and had $100,000 of common stock outstanding. Prime uses the fully adjusted...
Questions: For Kroger deposits in transit: What is the account titled Store deposits in-transit (refer to footnote 1)? This is not an account you will find on the majority of company financial statements. Why does Kroger include this account? Is it odd that this account is larger than the cash balance? How do you explain this? Information Needed to Answer Questions: Jan. 28, 2017 Jan. 30, 2016 $322 910 1,649 7,852 (1,291) 898 $ 277 923 1,734 7,440 (1,272) 790 9,892...
Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as a deductible medical expense? A. Cost of long-term care for a developmentally disabled person in a relative’s home. B. Special school for a deaf child to learn lip reading. C. Cost of elevator installed for individual who had heart bypass surgery (in excess of increase in value of individual’s home). D. Cost and care of guide dogs used by a blind person in his...