A partial statement of financial position of Ivanhoe Ltd. on December 31, 2022, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2022): Buildings Less: Accumulated depreciation Equipment Less: Accumulated depreciation $294,000 (To adjust the Buildings account to fair value) 94,000 $200,000 Ivanhoe uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Ivanhoe applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2022. On this date, an independent appraiser assessed the fair value of the building to be $146,000 and that of the equipment to be $100,000. (To eliminate the accumulated depreciation) $125,000 45,000 Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2022, using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To eliminate the accumulated depreciation) (To adjust the Equipment account to fair value) 80,000 Debit 100 00 Credit

On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $900,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Land Building Equipment Vehicles Total Cost $ 150,000 400,000 200,000 150,000 $ 900,000 Estimated Residual Value N/A none 12% of cost $ 15,000 Estimated Useful Life (in years) N/A 25 On June 29, 2025, equipment included in the March 31, 2024, purchase that cost $90,000 was sold for $70,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required 1 Required 2 Required 3 Building Equipment Vehicles Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024. 2. Prepare the journal entries to record the depreciation on the…

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Plant Asset Accumulated Depreciation $ 480,000 245,000 2,150,000 1,184,000 215,000 Land Land improvements Building Equipment Automobiles Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight Installation costs of $40,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, expenditures of $63,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On…

On March 31, 2021, Company A purchased a manufacturing facility along with vehicles and other equipment. The distribution of the total purchase price of $1,500,000 to the various types of assets, along with the estimated useful lives and residual values is as follows: The purchase on March 31, 2021 included equipment at the purchase cost of $150,000. The company sold equipment for $120,000 on June 29, 2022. Company A uses the following depreciation methods: straight-line depreciation method for buildings and equipment double-declining-balance method for vehicles Company A calculates partial-year depreciation based on the number of months an asset is in service. Company A Asset & Cost Land $150,000 Building $750,000 Equipment $360,000 Vehicles $240,000 Total $1,500,000 On June 29, 2022, equipment inculded in the March 31, 2021, purchase that cost $150,000 and was sold for $120,000. Company A uses the straight line depreciation method for buildings and equipment and the…

At 30 June 2020, White Ltd reported the following cash-generating unit, with the carrying amount totaling $530,000: Land 200,000 Equipment 600,000 Accumulated (300,000) depreciation - Equipment Goodwill 30,000 All items of property, plant and equipment are measured using the cost model. At 30 June 2020, the recoverable amount of the cash-generating unit was $480,000. For the period ending 30 June 2021, the depreciation charge on the equipment was $38,000. If the equipment had not been impaired the charge would have been $41,000. At 30 June 2021, the recoverable amount of the unit was calculated to be $15,000 greater than the carrying amount of the assets of the unit. As a result, White Ltd recognized a reversal of the previous year's impairment loss. Required: Prepare the journal entries relating to impairment at 30 June 2020 and impairment reversal at 30 June 2021.

Presented below is information related to Wolfie Corp.’s equipment on 12/31/2022: Description Amount Capitalized cost $900,000 Accumulated depreciation to date 750,000 Estimated residual value 40,000 Expected future cash flows 125,000 Estimated Fair value 100,000 The amount of the impairment loss, if any, that Wolfie Corp. should record on 12/31/22 is: $45,000 $50,000 $10,000 $20,000 $25,000 There is no impairment.

Information related to plant assets, natural resources, and intangible assets at the end of 2022 for Windsor, Inc. is as follows: buildings $1,060,000, accumulated depreciation-buildings $648,000, goodwill $409,000, coal mine $501,000, and accumulated depletion-coal mine $103,000. Prepare a partial balance sheet of Windsor, Inc. for these items. (List Property, Plant and Equipment in order of Coal Mine and Buildings.) Windsor, Inc. Balance Sheet (partial) $ $ $

Concord Corp's statement of financial position at the end of 2022 included the following items: Current assets Land Buildings Equipment Accumulated depreciation-buildings Accumulated depreciation equipment Intangible assets-patents. Total 1 2 3. 4. 5. The following information is available for the 2023 fiscal year: 6. 7. 8. 5. 6. 7. 8 9. $1,265,000 (a) 30,100 1,210,000 330,000 (141,000) (12,200) 40,200 $2.722,100 December 31, 2023 Concord prepares financial statements in accordance with IFRS. Assets Current liabilities Bonds payable Common shares Retained earnings Concord Corp. Statement of Financial Position Total $1,128,100 Net income was $409,000. Interest paid is treated as an operating activity. Equipment (cost of $21.600 and accumulated depreciation of $8,080) was sold for $10,800. Depreciation expense was $4.150 on the building and $9,160 on equipment. Amortization expense on a patent was $3,110. 1,221,000 Current assets other than cash increased by $33,000. Current liabilities…

Vinubhai

Following are the details related to fixed assets of Jackson company as at December 31, 2022: Date of Residual Purchase January 1, 2020 $15,000 April 1, 2015 1,000 Asset Machinery Delivery Van September 30, 2018 Furniture 500 December 31, 2012 Building 25,000 Required: Estimated Useful Life 30 Years 12 Years 8 Years 40 Years Cost $ 550,000 45,000 72,000 1,250,000 Value 1. Calculate the annual depreciation for each of the fixed assets given above. 2. Determine the book value of each fixed asset as on December 31, 2022.