What is the depreciation for 2023? On January 1, 2021, Mace Company purchased an equipment at a cost of P1,450,000 with usefullife of 4 years. On December 31, 2021 and December 31, 2022, the entity determined thatimpairment indicators were present. The entity provided the following information for impairmenttesting at year end:Fair value less cost of disposalValue in UseDecember 31, 20211 450 0001 500 000December 31, 2022575 000625 000No change was made in the remaining useful life.

Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = (1450000-0)/4…

Answered: On January 1, 2021, Mace Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 31, 20x1, Entity A determines that its building is impaired. Entity A gathers the following information: Building 2,000,000 Accumulated depreciation 600,000 Fair value less costs of disposal (FVLCD) 900,000 Value in use (VIU) 1,080,000 After the impairment, the building is assessed to have a remaining useful life of six years and no residual value. On December 31, 20x2, Entity A determines an indication that the impairment loss recognized in the prior period may no longer exist. The revised recoverable amount of the building on December 31, 20x2 is ₱1,280,000. If no impairment loss had been recognized in the prior period, the carrying amount of the building on December 31, 20x2 would have been ₱1,200,000. How much is the gain on reversal of impairment on December 31, 20x2?
On May 1, 2019, Al-Quds Co. purchased a trademark with a cost of $120000. The trademark is classified as an indefinite-life intangible asset. At December 31, 2019 and December 31, 2020, the following information is available for impairment testing: 12/31/2019 12/31/2020 Recoverable amount $114,000 $116,000 The 2020 income statement will report: Revaluation surplus of $2,000 a b. Impairment Loss of $6,000. C. Recovery of Impairment of $2,000 d. Recovery of Impairment of $6,000
On December 31, 20x1, Entity A determines that its building is impaired. Entity A gathers the following information: Building 2,000,000 Accumulated depreciation 600,000 Fair value less costs of disposal (FVLCD) 900,000 Value in use (VIU) 1,080,000 After the impairment, the building is assessed to have a remaining useful life of six years and no residual value. On December 31, 20x2, Entity A determines an indication that the impairment loss recognized in the prior period may no longer exist. The revised recoverable amount of the building on December 31, 20x2 is ₱1,280,000. If no impairment loss had been recognized in the prior period, the carrying amount of the building on December 31, 20x2 would have been ₱1,200,000. How much is the gain on reversal of impairment on December 31, 20x2? a. 314,351 b. 312,156 c. 303,315 d. 300,000
On December 31, 20x1, Entity A determines that its building is impaired. Entity A gathers the following information: Building 2,000,000 Accumulated depreciation 600,000 Fair value less costs of disposal (FVLCD) 900,000 Value in use (VIU) 1,080,000 After the impairment, the building is assessed to have a remaining useful life of six years and no residual value. How much is the impairment loss? a. 320,000 b. 180,000 c. 500,000 d. 270,000
On December 31, 20x1, Entity A determines that its building is impaired. Entity A gathers the following information: Building 2,000,000 Accumulated depreciation 600,000 Fair value less costs of disposal (FVLCD) 900,000 Value in use (VIU) 1,080,000 After the impairment, the building is assessed to have a remaining useful life of six years and no residual value. How much is the impairment loss?
Assume that the following asset group has been deemed impaired by $500,000 (as a group). Asset/Liability Pre-Impairment Net Carrying Value Fair Value Asset A $ 900,000 $600,000 Asset B $300,000 ? Asset C $450,000 $400,000 Asset D $600,000 ? Per your understanding of the application of ASC 360, what would be the post- impairment carrying value for Asset C? Group of answer choices $350,000 $400,000 $450,000 $0
As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $46,000 (cost of $62,000; accumulated depreciation of $16,000) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $38,600 and its fair value less costs of disposal (of $2,100) is $41,200. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $44,100. (a1) Compare the accounting for impairment of the equipment under IFRS versus ASPE IFRS Impairment loss ASPE
On December 31, 2019, Human subjected to impairment test a piece of equipment. Data pertinent to the equipment as of December 31, 2019 follows: Original cost 2,400,000Adjusted Accumulated depreciation 600,000Selling price 1,400,000Estimated cost to make the sale 200,000Value in use 1,100,000Remaining useful life 6 yearsMethod of depreciation Straight lineOn December 31, 2021, the asset is found to have a recoverable amount of P1,300,000. QUESTIONS:Based on the information above and your analysis, answer the following: 1) How much loss impairment is recognized in 2019? A. 400,000 C. 600,000 B. 500,000 D. 700,000 2) How much is the depreciation expense recognized in 2020? A. 200,000 C. 300,000 B. 216,667 D. 333,333 3) How much gain on recovery is recognized in 2021? A. 500,000 C. 300,000 B. 400,000 D. 200,000 4) How much much is the depreciation expense recognized in 2022 under the cost model? A. 325,000 C. 250,000 B. 300,000 D. 200,000 5) How much is the depreciation expense recognized…
Presented below is information related to equipment owned by Camel Company Q3- at December 31, 2021. Cost Accumulated depreciation to date Value-in-use Fair value less cost of disposal BD6,000,000 900,000 4,000,000 3,200,000 Assume that Camel company will continue to use this asset in the future. As of December 31, 2021, the equipment has a remaining useful life of 5 years. Required: Based on the above data use your advance skills to; a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2021. b. Prepare the journal entry to record depreciation expense for 2022. C. The recoverable amount of the equipment at December 31, 2022, is BD4,250,000. Prepare the journal entry (if any) necessary to record this increase.
Required: Indicate the differences in accounting treatment under IFRS and under US GAAP for the following situations as of December 31, 2022: 2. Property, plant, and equipment The company acquired a building at the beginning of 2021 with the following information: -Cost of $2,750,000 -Estimated useful life of 25 years -The estimated residual value of $250,000 -It is depreciated using the straight-line method. At the beginning of 2022, the market value of the building was $3,250,000. There is no change in residual value or estimated useful life. Please dont provide answer in an image format thank you
An asset, with a useful life of 10 years, wasacquired at the beginning of year 1 at a cost of $60 000. The asset is revalued at the beginning ofyear 4 in terms of the entitys revaluation policyto gross replacement cost of $ 80 000 at this date.Assume that depreciation calculated foraccounting purposes on the straight-line methodaccurately reflects economic obsolescence. What is the revaluation amount?
mark Inc. purchased a machinery on January 1, 2020, at a cost of P1,250,000. It is being depreciated using the straight-line method over its projected useful life of 8 years. On December 31, 2021, the asset’s fair value was P1,125,000. Accordingly, an entry was made on that date to recognize the revaluation surplus. Revaluation is recorded maintaining the proportionate relationship between the asset account and accumulated depreciation. It is the company policy to transfer a portion of revaluation surplus to retained earnings every period. What is the amount of revaluation surplus reported in equity on December 31, 2022?

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