Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division for possible impairment. The test revealed the following: book value of division's assets, $26.5 million; fair value of division's assets, $21 million; undiscounted sum of estimated future cash flows generated from the division's assets, $24 million. What amount of impairment loss should C&R recognize? (Enter your answer in millions rounded to 1 decimal place (i.e., 3,300,000 should be entered as 3.3).) Impairment loss million

In 2017, Bramble Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retail operations is properly considered a discontinued operation. During the current year, its store operations lost $ 750,000 (net of tax) while its online operations reported a profit of $ 3,210,000 (net of tax). Bramble sold the store operations at the end of the year at a loss of $ 1,360,000 (net of tax). Prepare an income statement for 2017 beginning with line item "Income from continuing operations." BRAMBLE CORPORATION Partial Income Statement %24 %24 > > >

After many years of success, Kaputnik Co. recorded net operating losses for the years year 13 through year 16, totaling $250 million, resulting in the recording of large deferred tax assets based on the assumption of a rapid return to profitability. However, attempts by management to revamp its outmoded business model have so far failed. A radical final attempt to save the company will be implemented in year 18. It will entail selling off the vast majority of Kaputnik's asset groups while maintaining a small but promising segment. The projected outlook for the near term is a modest net profit of $5 million over the next three years, beyond which it is impossible to determine if Kaputnik Co. will even still be in existence. The enacted tax rate has been 35% for the last several years and is expected to be 21% in year 17 and future years. No addition to the deferred tax asset balance will be recorded for year 17, during which Kaputnik recorded a $70 million net operating loss, nor has…

A copy machine costs $41,000 when new and has accumulated depreciation of $35,000. Suppose Hilton Copy Center discards this machine and receives nothing. What is the result of the disposal transaction? A. No gain or loss B. Gain of $6,000 C. Loss of $40,000 D. Loss of $6,000

XYZ Ltd. is a manufacturing company that produces specialized machinery. The company has been in business for the last 10 years and has always used the straight-line method of depreciation to calculate the depreciation expense for its machinery. However, the company's financial controller has recently proposed that they switch to the double- declining balance method instead. The financial controller argues that this method would result in a more accurate depreciation expense calculation and better reflect the actual usage of the machinery over time. Questions: 1. What is the straight-line method of depreciation? 2. What is the double-declining balance method of depreciation? 3. What are the advantages and disadvantages of using the straight-line method? 4. What are the advantages and disadvantages of using the double-declining balance method? 5. Should XYZ Ltd. switch to the double-declining balance method of depreciation? Why or why not?

The net assets of Fragrance, a cash generating unit (CGU), are:   $ Property, plant and equipment 200,000 Allocated goodwill 50,000 Product patent 20,000 Net current assets (at net realizable value)  30,000 Total 300,000 As a result of adverse publicity, Fragrance has a recoverable amount of only $200,000. What would be the value of Fragrance's property, plant, and equipment after the allocation of the impairment loss? $154,545   $170,000   $160,000   $133,333