Ryan Company reported an impairment loss of P2,540,000 in its statement of comprehensive income for the year ended December 31, 2018. This loss was related to long-lived assets acquired on January 1, 2017 with cost of P10,000,000, useful life of 10 years and 200,000 residual value. On the December 31, 2018 statement of financial position, Ryan reported these long-lived assets at P5,500,000 which is the fair value on such date. On December 31, 2019, Ryan determined that the fair value of its impaired long-lived assets had increased to P6,700,000. The straight line depreciation is recorded for the impaired assets. Required: Depreciation expense for 2019. *

Ryan Company reported an impairment loss of P2,540,000 in its statement of comprehensive income for the year ended December 31, 2018. This loss was related to long-lived assets acquired on January 1, 2017 with cost of P10,000,000, useful life of 10 years and 200,000 residual value. On the December 31, 2018 statement of financial position, Ryan reported these long-lived assets at P5,500,000 which is the fair value on such date. On December 31, 2019, Ryan determined that the fair value of its impaired long-lived assets had increased to P6,700,000. The straight line depreciation is recorded for the impaired assets. Required: Depreciation expense for 2019. *

Name: Ryan Company reported an impairment loss of P2,540,000 in its stateme
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Description: Ryan Company reported an impairment loss of P2,540,000 in its statement 1of comprehensive income for the year ended December 31, 2018. This losswas related to long-lived assets acquired on January 1, 2017 with cost ofP10,000,000, useful life of 10 y

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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Ryan Company reported an impairment loss of P2,540,000 in its statement of comprehensive income for the year ended December 31, 2018. This loss was related to long-lived assets acquired on January 1, 2017 with cost of P10,000,000, useful life of 10 years and 200,000 residual value. On the December 31, 2018 statement of financial position, Ryan reported these long-lived assets at P5,500,000 which is the fair value on such date. On December 31, 2019, Ryan determined that the fair value of its impaired long-lived assets had increased to P6,700,000. The straight line depreciation is recorded for the impaired assets. Required: Depreciation expense for 2019. Please answer it complete using good accounting form. Thank you
Putin Company reported an impairment loss of P5,200,000 in its income statement for the year 2016. This loss was related to a building that was acquired on January 1, 2012 with a cost of P80,000,000 (no residual value). Depreciation on the building is computed on a straight-line basis at the rate of 4% per year. Depreciation for the year 2017 was computed based on the asset’s recoverable amount at December 31, 2016.On December 31, 2021, the entity decided to measure its building using revaluation model. This building was then appraised to a fair value of P50,000,000.What amount of gain on impairment recovery should Putin Company report in its 2021 income statement?
Samgyup Company reported an impairment loss of P5,200,000 in its income statement for the year 2016. This loss was related to a building that was acquired on January 1, 2012 with a cost of P80,000,000 (no residual value). Depreciation on the building is computed on a straight-line basis at the rate of 4% per year. Depreciation for the year 2017 was computed based on the asset’s recoverable amount at December 31, 2016.On December 31, 2021, the entity decided to measure its building using revaluation model. This building was then appraised to a fair value of P50,000,000.What amount of gain on impairment recovery should Samgyup Company report in its 2021 income statement?
Alex Company reported an impairment loss of P5,200,000 in its income statement for the year 2016. This loss was related to a building that was acquired on January 1, 2012 with a cost of P80,000,000 (no residual value). Depreciation on the building is computed on a straight-line basis at the rate of 4% per year. Depreciation for the year 2017 was computed based on the asset’s recoverable amount at December 31, 2016.On December 31, 2021, the entity decided to measure its building using revaluation model. This building was then appraised to a fair value of P50,000,000.What amount of gain on impairment recovery should Alex Company report in its 2021 income statement?
Joules Inc. reported an impairment loss of P5,200,000 in its income statement for the year 2015. This loss was related to a building that was acquired on January 1, 2011 with a cost of P80,000,000 (no residual value). Depreciation on the building is computed on a straight-line basis at the rate of 4% per year. Depreciation for the year 2017 was computed based on the asset’s recoverable amount at December 31, 2015.On December 31, 2020, the entity decided to measure its building using revaluation model. This building was then appraised to a fair value of P50,000,000.What amount of gain on impairment recovery should Joules Inc. report in its 2020 income statement?
Cake Company reported an impairment loss of P784,000 in its income statement for the year 2020. This loss was related to a building that was acquired on January 1, 2010 with a cost of P6,000,000 (no residual value). Depreciation on the building is computed on a straight-line basis and annual depreciation on cost is P240,000. As a result of the building's impairment, depreciation for the year 2021 was revised based on the asset's recoverable amount at December 31, 2020. On December 31, 2023, after recording the depreciation for the year, the entity decided to measure its building using revaluation model. At that time, there were evidences of recovery in the building value owing to the flourishing business in Cake Company's location. The building was then appraised at a fair value of P2,800,000. What is the amount of gain on impairment recovery that Cake Company should report in its 2023 income statement and the amount of revaluation surplus reported in equity at December 31, 2023,…
Law Co. reported the following calculation relating to an impairment loss suffered on December 31, 2021: Goodwill Other assets 3,000,000 (3,000,000) 0 Carrying amount Impairment loss Adjusted carrying amount 9,000,000 (2,000,000) 7,000,000 There has been a favorable change in the estimate of the recoverable amount of the net assets. The recoverable amount is now P8,000,000 on December 31, 2022. The "Other assets" are depreciated at 20% of reducing balance. Required: 1. How much is the carrying amount of the "Other assets" on December 31, 2022 had there been no impairment? 2. What amount of gain on reversal of impairment should be recognized in 2022? 3. What amount of the gain on reversal of impairment is applied to goodwill? +
Pocholo Company reported an impairment loss of P512,000 in its income statement for the year 2016. This loss was related to a building that was acquired on January 1, 2008 with a cost of P4,000,000 (no residual value). Depreciation on the building is computed on a straight-line basis and annual depreciation on cost is P160,000. Depreciation for the year 2017 was computed based on the asset’s recoverable amount at December 31, 2016.On December 31, 2021, the entity decided to measure its building using revaluation model. This building was then appraised to a fair value of P2,100,000. What amount of gain on impairment recovery should Pocholo report in its 2021 income statement? a. 128,000 b. 352,000 c. 512,000 d. 692,000
MABC Company reported an impairment loss of P2,000,000 in 2020. This loss was related to an item of property, plant and equipment which was acquired on January 1, 2019 with cost of P10,000,000, useful life of 10 years and no residual value. On December 31, 2021, the entity determined that the fair value of the impaired asset had increased to P6,850,000. The straight line method is used in recording depreciation and uses cost model to account its property, plant and equipment. What amount of gain on reversal of impairment should be reported in the income statement for 2021?
Maya-Maya Company had the following transactions during 2020: a. On January 1, Vilma company recorded a loss resulting from a change in inventory valuation method of P80,000. b. The company had estimated that total depreciation expense for the year ended December 31, 2020 will amount to P400,000. As of the beginning of the year, the company had fixed assets amounting to P1,000,000 and acquired additional fixed assets of P2,000,000 on June 30, 2020. The estimated useful life is for 5 years. c. The 2020 year-end bonuses to employees will total P600,000. d. The company had also a 180-day note receivable dated February 28, 2020, amounting to P3,000,000 and carries a 12% interest rate. It was discounted without recourse on the same day for a net proceed of P2,985,000. In the company’s interim income statement for the six months ended June 30, 2020, what total amount of expense relating to these items should be reported?
The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at the end of 2020 are shown here. Equipment Beg. bal. 80,600 Disposals 23,800 Acquisitions 40,000 End. bal. 96,800 Accumulated Depreciation—Equipment Disposals 8,700 Beg. bal. 47,800 Depr. exp. 13,300 End. bal. 52,400 In addition, Luo’s income statement reported a loss on the disposal of plant assets of $6,100. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment $
A building owned by Cake Corporation had suffered impairment in value, and an impairment loss of P2,400,000 was recognized by the company on December 31, 2019. Before the recognition of impairment, the ledger accounts of the Cake showed the following balances at Dec. 31, 2019:· Building- P10,000,000· Accumulated Depreciation- P2,000,000The building was originally estimated to have a useful life of twenty years when acquired on January 1, 2016. Depreciation was computed using straight-line method. The company measures all buildings it owns using the cost model. The company had the intention of occupying the building for its remaining useful life of 16 years. What is the accumulated depreciation balance on December 31, 2022?