8,540,000 Fair value 5,856,0
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Presented below is information related to equipment owned by Blue Company at December 31, 2020.
Cost | $10,980,000 | |
1,220,000 | ||
Expected future net cash flows | 8,540,000 | |
Fair value | 5,856,000 |
Assume that Blue will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.
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- View Policies Current Attempt in Progress The intangible assets section of Pina Corporation's balance sheet at December 31, 2022, is presented here. Patents ($73,300 cost less $6,900 amortization) Copyrights ($57,000 cost less $46,700 amortization) $66,400 10,300 Total $76,700 The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Paid $54,000 legal costs to successfully defend the patent against infringement by another company. Developed a new product incurring $241.500 in research and development costs. A patent was granted for the product on July 1. and its useful fife is equal to its legaf life. Legal and other costs for the patent were $20,000. Paid $68,000 to a quarterback to appear in commercials advertising the company's products. The comimercials will air in September and October. Acquired a…There are two Journal Entries 1) Prepare journal entries for Wember to record the impairment of its intangible assets at December 31, 2019 2) Prepare journal entries for Wember to record the amortization expense for its intangibles at December 31, 2020UPARIAM CANUAR 1 Required information. Requirea: 1. Record amortization expense for the intangible assets at December 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the amortization on goodwill. Note: Enter debits before credits. Transaction General Journal Debit Credit
- After first recording any impairment losses on plant and equipment and the patent. Required: 1. Compute the book value of the plant and equipment and patent at the end of 2024. 2. When should the plant and equipment and the patent be tested for impairment? 3. When should goodwill be tested for impairment? 4. Determine the amount of any impairment loss to be recorded, if any, for the three assets. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the book value of the plant and equipment and patent at the end of 2024. Note: Enter your answers in millions rounded to 1 decimal place. For example, $5,500,000 should be entered as $5.5. Plant and equipment Book Value million Patent millionWhich of the following methods is used to amortize intangible assets over their useful lives? a. a declining balance methodb. straight linec. annual review for impairmentd. intangible assets are not amortized1. Determine the impairment loss, if any, to be recorded on December 31,2020 a) Assume that the fair Value of the Conchita Division is 41764000 instead of $1850000. Determine the impairment loss, if any, to be recorded on December 31,2020 b) Prepare the journal entry to record the impairment loss, if any, and indicate where loss would be reported in the income statement
- 1 Select the best answer for the question. 11. What is the process by which the cost of a fixed asset over its estimated useful life is periodically charged to an expense a O A. Hypothecation B. Accretion C. Liquidation D. Depreciation O Mark for review (Will be highlighted on the review page) > O Hi Fu• Compute the Impairment Loss on January 1,2020 • Compute the Accumulated Depreciation on December 31, 2020 • Compute the Carrying Amount of Asset on December 31, 2020On July 1, 2020, Bridgeport Corporation purchased Johnson Company by paying $189,700 cash and issuing a $64,500 note payable to Steve Johnson. At July 1, 2020, the balance sheet of Johnson Company was as follows. Cash $38,100 Accounts payable $160,000 Accounts Receivable 67,500 Stockholders' equity 165,800 Inventory 75,800 $325,800 Land 29,400 Buildings (net) 55,200 Equipment (net) 52,200 Copyrights 7,600 $325,800 The recorded amounts all approximate current fair values except for land (worth $45,400), inventory (worth $94,900), and copyrights (worth $11,300).
- Question 3 Poppy Traders owns the following assets on 31 December 2021: 1. Ford EcoSport-CS 23 TM GP: Purchased on 30/6/2019 for R250 000. 2. Packaging machine: Purchased on 1/4/2020 for R300 00. Poppy Traders writes off depreciation as follows: Vehicles at 20% per annum using the diminishing balance method. Machinery at 25% per annum using the straight-line method.Access the FASB Accounting Standards Codification at the FASB website (asc.fasb.org). Determine the specific citation for each of the following items: 1. Depreciation involves a systematic and rational allocation of cost rather than a process of valuation. 2. The calculation of an impairment loss for property, plant, and equipment. 3. Accounting for a change in depreciation method. 4. Goodwill should not be amortized.Required: Show adjusting entry required on 30 June 2021 for depreciation of the delivery vehicle acquired with Little Bit of Printing assuming they are depreciated using the reducing balance method at a rate of 30% and the business was purchased on September 1, 2020