At the end of 2023, Swifty Corporation owns a licence with a carrying amount of $510,000. Swifty expects undiscounted future cash flows from this licence to total $515,600. The licence's fair value is $405,700 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $455,000. Assume that the licence was granted in perpetuity and has an indefinite life, and that Swifty prepares financial statements in accordance with ASPE. Assume that the licence was granted in perpetuity and has an indefinite life. Determine if the licence is impaired at the end of 2023. The licence is impaired at the end of 2023. Prepare any related entry that is necessary. (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 debit entry before credit entry.) Account Titles and Explanation Loss on Impairment Accumulated Impairment Losses - Licences eTextbook and Media List of Accounts Debit Credit

For the next two questions, a "+" sign is optional for any answer that is a net cash inflow, but a "-" sign is mandatory for any answer that is a net cash outflow. Reebok Ltd is purchasing a $7.7 million machine, which will cost the firm an additional $46,000 to have the machine transported and installed ready for use. The machine is depreciated to a value of zero over a tax life of 4 years via the straight-line method. It will also be worthless in the salvage market at this time. The machine is expected to generate incremental revenues of $4.4 million per year for the firm while also causing incremental costs of $1.6 million per year. Reebok's marginal tax rate is 37.5%. You are forecasting incremental free cash flows for Reebok Ltd (a) What is the incremental free cash flow associated with the new machine at t=0? The free cash flow at t=0 will be $ (Round your answer to the nearest dollar) (b) What is the annual incremental free cash flows each year from t=1 to t=4? The annual free…

David Ltd commences operations on 1 July 2020 On the same date, it purchases a  machine at a cost of $1000 000 The machine is expected to have a useful life of 4 years, with benefits being uniform throughout its life. It will have no residual value at the end of 4 years Hence, for accounting purposes the depreciation expense would be $250 000 per year For taxation purposes, the ATO allows the company to depreciate the asset over three years—that is, $200 000 per year The profit before tax of the company for each of the next four years (years ending 30 June) is $600 000, $700 000, $800 000 and $900 000 respectively The tax rate is 30 per cent. Required: 1. Calculate the taxable profit on 30 June 2021,  30 June 2022,  30 June 2023.2. Record the necessary journal entries.

Bangor Ltd operates under ideal conditions of uncertainty. On January 1, 2022, the company acquired an asset to be used in its operations. Its cash flows depend on the market conditions. The asset will last three years, at which time its salvage value will be £200. The company financed the asset purchase by issuing ordinary shares. In 2022, net cash flows will be £1600 if the market conditions are favourable and £700 if they are unfavourable. In 2023, cash flows will be £1800 if the market conditions are favourable, and £600 if they are unfavourable. In 2024, cash flows will be £2200 if the market conditions are favourable, and £900 if they are unfavourable. Cash flows are received at year-end. In 2022, the probability that the market conditions are favourable is 0.4 and 0.6 that they are unfavourable. In 2023 and 2024, the probability that the economic conditions are favourable is 0.7 and 0.3 that they are unfavourable. The interest rate in the economy is 9% in all three years. The…