The information regarding the fixed assets of Melcher Inc. as of December 31, 2020 is providedbelow:Expected future cash flows from the fixed assetsHistorical cost of fixed assetsAccumulated depreciation on fixed assetsPresent value of expected future cash flows from fixed assetsWhat is the amount of any impairment loss under US GAAP?O $0$5,000$7,000$37,000$80,000$105,000$30,000$68,000

Impairment losses are recognized as costs on the income statement and diminish the book value of the…

Answered: The information regarding the fixed…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 36BE: Analyzing Fixed Assets Pitt reported the following information for 2018 and 2019: Required: Compute...

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The information regarding the fixed assets of Broadwing Company as of December 31, 2019 is provided below: Expected future cash flows from the fixed assets Carrying value of fixed assets Present value of expected future cash flows from the fixed $80,000 $105,000 $68,000 $90,000 assets Selling price of fixed assets What is the amount of impairment loss under US GAAP? a. $10,000 b. $25,000 c. $23,000 d. $15,000
Net income for Inkaleb Inc. for 2020 includes the effect of the following transactions involving the sale of fixed assets. Asset Sales Price Cost Gain (Loss)X P20,000 P 80,000 P 10,000Y 25,000 150,000 (18,000)Purchases of fixed assets during 2020 amounted to P340,000. The Accumulated Depreciation account increased P40,000 during 2020. How much is the depreciation expense for 2020?
statement of cash flow 2019 GH¢’000 2018 GH¢’000 2017 GH¢’000 Cash flows from operating activities Profit before income tax 32,548 35,430 11,576 Adjustments for: - Depreciation 56,108 58,326 54,759 - Amortisation 1,185 971 563 - Loss/(profit) on disposal of property, plant and equipment 2,242 (9) (566) - Impairment charge 1,110 534 43 - Finance cost 19,579 19,392 30,724 - Finance income (2,245)…
statement of cash flow 2019 GH¢’000 2018 GH¢’000 2017 GH¢’000 Cash flows from operating activities Profit before income tax 32,548 35,430 11,576 Adjustments for: - Depreciation 56,108 58,326 54,759 - Amortisation 1,185 971 563 - Loss/(profit) on disposal of property, plant and equipment 2,242 (9) (566) - Impairment charge 1,110 534 43 - Finance cost 19,579 19,392 30,724 - Finance income (2,245)…
if the Accumulated depreciation in a company was 80,000 in 2019 and then increased to reach 132,000 in 2020. Then we would report the depreciation expense in the cash flow statement:- Select one: a. 52000 b. (52000) c. 132000 d. 80000
29. Analyzing Fixed Assets Pitt reported the following information for 2021 and 2022: 2021 2022 Property, plant, and equipment, cost $550,000 $ 550,000 Accumulated depreciation 170,000 220,000 Net sales 4,600,000 Depreciation expense 50,000 Required: Compute Pitt's tangible capital asset turnover ratio and the average age of tangible depreciable capital assets. Round "Tangible Capital Asset Turnover" to two decimal places and "Average Age of Tangible Depreciable Capital Asset" to one decimal place.
The information that follows relates to equipment owned by Coronado Limited at December 31, 2023: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) Fair value Costs to sell (costs of disposal) $7,920,000 880,000 6,160,000 5,588,000 5,456,000 44,000 At December 31, 2023, Coronado discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It is expected that the costs of disposal will total $44,000.
4. Net income for Jimin Company for 2020 includes the effect of the following transactions involving the sale of fixed assets: Sales Price P20,000 25,000 Purchases of fixed assets during 2020 amounted to P340,000. The Accumulated Depreciation account increased P40,000 during 2020. How much is the depreciation expense for 2020? Cost P 80,000 150,000 Gain (Loss) P 10,000 (18,000) Asset Y
YOU CAN DO IT Corporation has equipment with a carrying value of 450,000 on December 31, 2021. The following information was available on December 31, 2021: · Expected net cash flows (undiscounted)- P420,000 · Expected net cash flows discounted at 7%- P400,000 · Fair value, using the assets with other assets- P415,000 · Fair value, assuming the assets are sold stand-alone- P428,000 What is the impairment loss that the Company must report in its 2021 income statement for this equipment? A. 50,000 B. 22,000 C. 30,000 D. 35,000
Which of the following formulas for the capital expenditure on intangibles is correct? Assume the current time (now) is t1 and last year is to, and that 'Intangible assets' is a carrying value net of accumulated amortisation. Select one: a. CapExOnIntangibles(t1) = IntangibleAssets (t1) + IntangibleAssets (t0) + Amortisation ExpenseOnIntanglibles (t1) b. CapExOnIntangibles(t1) = IntangibleAssets (t1) - IntangibleAssets(t0) + Amortisation ExpenseOnIntanglibles(t1) c. CapExOnIntangibles (t1) = IntangibleAssets(t1) - IntangibleAssets(t0) - Amortisation ExpenseOnIntanglibles (t1) d. CapExOnIntangibles(t1) = IntangibleAssets (t1) + AmortisationExpenseOnIntanglibles (t1) e. CapExOnIntangibles (t1) = IntangibleAssets (t1) - Amortisation ExpenseOnIntanglibles (t1)
The following information are related to Al Noor Company for the projected year 2020 Account Amount (Projected) Total current assets apart from cash RO 15,450,000 Total non-current assets RO 25,100,000 Total assets RO 41,514,000 REQUIRED: A. Calculate the projected cash balance for the year 2020 B. Assume year 2019 cash balance was RO 2,694000 and total assets was RO 38,751,600. Comment on the level of project cash found in A above for Al Noor Company and suggest the correct policy the company needs to follow with the projected cash balance
Estimate the average total estimated useful life of depreciable property, plant, and equipment. Starbucks reports 580.6 million of depreciation and amortization in the statement of cash flows, of which 4.5 million relates to amortization of limited-life intangible assets. Does the estimate reconcile with stated accounting policy on useful lives for property, plant, and equipment? Explain.

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