At 1 July 2020, Flamingo Ltd acquired computer equipment at a cost of $900,000. The expected useful life of equipment was 5 years with no residual value. At 30 June 2021, the fair value of equipment was assessed. The equipment had a fair value of $820 000, and directors decided to adopt the revaluation method. The remaining useful life was also assessed to be 4 years for equipment. At 30 June 2022, the fair value of equipment was assessed to be $500 000. Required: Prepare the journal entries for Flamingo Ltd for the years ending 30 June 2021 and 2022.

On December 31, 2019, an equipment with a carrying amount of P6,500,000 (cost of P10.000,000 less accumulated depreciation of P3,500,000) was tested for impairment. An impairment loss of P1,250,000 was recognized and the basis is the recoverable amount which is the estimated fair value less costs to sell on this date. The equipment had a remaining useful life of 8 years and estimated residual value of P50,000. On December 31, 2022, there are indications that the impairment loss recognized in 2019 may be reversed. The value in use is based on estimated net cash flows of P1,000,000 every year (discount rate is 7%) while the asset is in use while the fair value was at P4,200,000 and costs to sell is estimated at P90,000. Which of the following statements is (are) correct? Statement 1: The asset is reported in the statement of financial position as of December 31, 2022 at P4,110,000. Statement 2: The income statement for the year ended December 31, 2022 shall report a gain on recovery of…

Lex plc. is a manufacturer located in the Midlands operating in the textiles industry. The company decided to revalue its buildings on 1 January 2019 to their market value. On 1 January 2019, prior to the revaluation exercise, the carrying amount of buildings corresponded to their original cost of £4m less accumulated depreciation of £0.4m. The fair value of buildings at the date of revaluation was confirmed to be £4.5m with an estimated remaining life of 18 years at that date. As at 31 December 2020, due to the economic impact of the COVID-19 pandemic, the fair value of Lex plc.'s buildings decreased to £3m. No depreciation has yet been charged on non-current assets for the years ended 31 December 2019 and 31 December 2020. Lex opted to transfer any balances in the revaluation surplus account to retained earnings only when the asset is derecognised. Required: Explain the accounting treatment for the transactions above for the years ended 31 December 2019 and 31 December 2020. In your…

Electrolux Group. has decided to close its oil and gas operations in Aberdeen on 1 March 2020 but retain the warehouse from which the operations were carried out as an investment property. The warehouse had a net book value at 30 September 2019 of £6.8m and a fair value of £7.2m at 1 March 2020. At the company's year end of 30 September 2020, the fair value of the warehouse was £8.0m. Assuming Electrolux group policy is to value investment property at fair value, the amount that the company would include in in the income statement for the year ended 30 September 2020 would be: O a. Debit £0.5m O b. Debit £0.4m O c. Credit £1.2m O d. Credit £0.8m

On June 30, 2022, L Company classified a non-current asset as “Held for Sale.” On this date, before its reclassification, its carrying amount was P5,000,000 and its expected selling price was P4,500,000, with expected cost to sell of P300,000. By December 31, 2022, the asset had not yet been sold, but the management is still committed to a plan to sell it, and the sale is considered to be highly probable. The entity estimated that because of recent changes for the demand of the product that is produced by the asset and expected favorable price movement, the asset was now expected to be selling at P5,500,000 with related cost to sell unchanged. Depreciation from July 1 to December 31 would have been P500,000. What amount of gain shall be recognized at December 31, 2022 as a result of the increase in the fair value less cost to sell of the asset?

On January 1, 2023, Blossom Ltd. acquires a building at a cost of $200,000. The building is expected to have a 20-year life and no residual value. The asset is accounted for under the revaluation model, using the asset adjustment method. Revaluations are carried out every three years. On December 31, 2025, the fair value of the building is appraised at $175,000, and on December 31, 2028, its fair value is $120,000. Blossom applies IFRS. Prepare the journal entries required on December 31, 2025, and the journal entry required on December 31, 2028, to revalue the building, if Blossom uses the proportionate 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. Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.) Date ec. 31, 2025 c. 31, 2028 V Account…

Johnson Company purchased an equipment at P6,500,000 on January 1, 2020 which will be used for a total of 10 years, no salvage value. Johnson accounted for this equipment using the revaluation model. The value in use of the assets during the three revaluation dates were P5,556,000, P4,413,000 and P4,240,000 on December 31, 2020; 2021; and 2022. While the fair values are P5,500,000, P4,620,000; and P4,770,000; respectively for 2020, 2021 and 2022 with cost to sell of P100,000; P120,000; and P110,000, respectively.   How much is the income (expense) recognized in 2020? How much is the income (expense) recognized in 2021? How much is the income (expense) recognized in 2022?

On 1 October 2019, company X (with a year-end as at 30th Sept) acquired an item of machinery for£10,720. During the year, the machinery had got damaged and was underperforming, although it was stillbeing used. By 30 September 2020, following the damage, the item of machinery had an estimatedremaining useful life of two years, a value in use of £6,300 and a fair value of £6,400. The costs to sell theitem of machinery amounted to £500. Company X depreciates machinery on a reducing balance basis ata rate of 20% per annum.Compute the impairment loss in relation to the aforementioned item of machinery to be shown in companyX’s income statement for the year ending 30th September 2020.

On January 1, 2019, Ivanhoe Corporation acquired equipment at a cost of $858000. Ivanhoe adopted the sum-of-the-years’-digits method of depreciation for this equipment and had been recording depreciation over an estimated life of 8 years, with no residual value. At the beginning of 2022, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2022 would be $171600. $107250. $44688. $71500.

On January 1. 2024, Ghosh Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31,2027 , at which time possession of the leased asset will revert back to Ghosh. - The equipment cost Ghosh$960,000and has an expected useful life of five years. - Ghosh expects the residual value at December 31, 2027, will be$304,000. - Negotiations led to the lessee guaranteeing a$344,000residual value - Equal payments under the finance/sales-type lease are$204,000and are due on December 31 of each year with the first payment being made on December 31, 2024. - Karrier is aware that Ghosh used a4%interest rate when calculating lease payments. Note: Use tables, Excel, or a financial calculator. (EV of \$1. PV of \$1. EVA of$1, PVA of S1. FVAD of$1and PVAD of S1) Required: 1. Prepare the appropriate entries for both Karrier and Ghosh on January 1, 2024, to record the lease. 2. Prepare all appropriate entries for both Karrier and Ghosh on December 31, 2024,…