Dept of Agriculture determines an indication that its investment property purchased on Jan 1 2005 might be impaired starting Jan. 1. 2008. The entity gathers the fol
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- Prepare a nowchart for MACRS depreciationicost recovery of fixed assets. You may limit your flowchart to tangible personal property falling into the 5 and 7 year classes and roal property used in rental and non-rental classes. For purposes of your flowchart, you should assume that Soction 179 exists as well as any "bonus depreciation" provisions that would apply to 2023 acquisitions. Your flowchart does not need to reflect any limitations applicable to automobiles. You may also ignore any depreciation implications related to: Section 179 bonus depreciation on REAL property Alternate MACRS lives/ methods Alternative Minimum Tax State Income taxes You should base your flowchart on 2023 tax provisions. FORMAT Your fiowchart(s) should be asable reference tool that one could follow to determine the proper treatment for any covered situation.As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $46,000 (cost of $62,000; accumulated depreciation of $16,000) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $38,600 and its fair value less costs of disposal (of $2,100) is $41,200. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $44,100. (a1) Compare the accounting for impairment of the equipment under IFRS versus ASPE IFRS Impairment loss ASPEThe applicable IFRS/IAS for a property being constructed or developed for future use as investment property is (a) IAS 2, Inventories, until construction is complete and then it is accounted for under IAS 40, Investment Property. (b) IAS 40, Investment Property. (c) IAS 11, Construction Contracts, until construction is complete and then it is accounted for under IAS 40, Investment Property. (d) IAS 16, Property, Plant, and Equipment, until construction is complete and then it is accounted for under IAS 40, Investment Property.
- Which of the following is not dealt with by PAS 41? [A] the accounting for biological assets [B] the subsequentmeasurement of agricultural produce harvested from biological assets [C] the accounting treatment of government grant received in respect of biological assets [D] all of the choices are dealt with by PAS 41.[The following information applies to the questions displayed below.] A recent annual report for Commonwealth Delivery included the following note: NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY AND EQUIPMENT. Expenditures for major additions, improvements and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred . . . Assume that Commonwealth Delivery made extensive repairs on an existing building and added a new wing. The building is a garage and repair facility for delivery trucks that serve the Denver area. The existing building originally cost…What categories of property, plant, equipment, and intangible assets does Targetreport in its January 30, 2016, balance sheet?
- 5. Determine the total gain from change in fair value as of December 31, 2019. * 626,400 831,600 1,004,400 1,080,000 None of the choices1.)For an asset to be held for sale,: 1. It must be available for immediate sale in its present condition 2. Its sale must be highly probable 3. The management must be committed to a plan to sell the asset 4. The management must have an active program to locate a buyer 5. The asset must be actively marketed for sale 6. The sale should be expected to be completed within one year from the date of classification 7. The asset should be fully depreciated a. 1 to 6 only b. 1 to 4 only c. 1 to 5 only d. 1 to 7 all 2.)Which of the following is not an objective of PAS 10? a. To prescribe when an entity should adjust its financial statements for events after the reporting period b. To prescribe how an entity should distinguish favorable events from unfavorable c. To prescribe the disclosures that an entity should give about the date when the financial statements were authorized for issue and about events after the reporting period d. To require an entity should not prepare its financial…Se.114.
- FASB recently issued a Proposed Accounting Standard Update on impairment for intangible assets. What is the primary purpose for FASB to issue Proposed Accounting Standards Updates?E9.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. a. Money borrowed to pay building contractor (signed a note) b. Payment for construction from note proceeds c. Cost of land fill and clearing d. Delinquent real estate taxes on property assumed by purchaser e. Premium on 6-month insurance policy during construction f. Refund of 1-month insurance premium because construction completed early g. Architect's fee on building h. Cost of real estate purchased as a plant site (land $200,000 and building $50,000) i. Commission fee paid to real estate agency j. Installation of fences around property k. Cost of razing and removing building 1. Proceeds from salvage of demolished building m. Interest paid during construction on money borrowed for construction n. Cost of parking lots and driveways o. Cost of trees and shrubbery…What is the treatment of a § 179 expensing carryforward? Any § 179 amount in excess of business income / the asset acquisition cost limitation is carried forward to future taxable years and added to/ deducted from other amounts eligible for expensing. The § 179 amount eligible for expensing in a carryforward year is limited to the greater / lesser of (1) the current statutory dollar amount increased / reduced by the cost of § 179 property placed in service in excess of the appropriate acquisition limit in the carryforward year or (2) the business income / asset acquisition cost limitation in the carryforward year.