In 2015, Bambung Corporation acquired production machinery at a cost of £416,000, which now has a book value of £195,000. The discounted future cash flows from use of the machinery is £175,000 and its fair value less costs to sell is £159,000. What amount should Bambung recognize as a loss on impairment under IFRS? Group of answer choices £16,000 £36,000 -0- £20,000
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- In 2015, DimDung Company acquired production machinery which now has a book value of ¥745,000. The discounted future cash flows from use of the machinery is ¥400,000 and its fair value less costs to sell is ¥350,000. DimDung has determined that an impairment loss has occurred. What is the carrying value of the machinery after the journal entry to record the impairment loss has been recorded under IFRS? Group of answer choices ¥400,000 ¥395,000 ¥345,000 ¥350,00In 2015, Mennorah Corporation acquired production machinery at a cost of $490,000, which now has a book value of $190,000. The sum of undiscounted future cash flows from use of the machinery is $180,000. and it's fair value is $120,000. What amount should Mennorah recognize as a loss on impairment? Group of answer choices $70,000 -0- $370,000 $60,000In 2015, Mennorah Corporation acquired production machinery at a cost of $490,000, which now has a book value of $190,000. The sum of undiscounted future cash flows from use of the machinery is $180,000. and it's fair value is $120,000. What amount should Mennorah recognize as a loss on impairment?
- In 2015, Zee Tee Inc. acquired production machinery at a cost of $640,000, which now has a accumulated depreciation of $380,000. The sum of undiscounted future cash flows from use of the machinery is $210,000. and its fair value is $198,000. What amount should Zee Tee recognize as a loss on impairment? Group of answer choices $50,000 $62,000 $318,000 -0-In June 2023, Plane Company exchanged an old packaging machine, which had a cost ofP1,200,000 and was 50% depreciated, for a non-monetary asset. The market value of the old packaging machine was determined to be P700,000. What is the cost of the new asset acquired?(Impairment) The management of Petro Garcia Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $900,000 with depreciation to date of $400,000 as of December 31, 2017. On December 31, 2017, management projected its future net cash flows from this equipment to be $300,000 and its fair value to be $230,000. The company intends to use this equipment in the future.Instructions(a) Prepare the journal entry (if any) to record the impairment at December 31, 2017.(b) Where should the gain or loss (if any) on the write-down be reported in the income statement?(c) At December 31, 2018, the equipment’s fair value increased to $260,000. Prepare the journal entry (if any) to record this increase in fair value.(d) What accounting issues did management face in accounting for this impairment?
- MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years. The fair values of the property were measured as below: Date RM (in million) 31/12/2015 72 31/12/2016 74 31/12/2017 78 31/12/2018 83 Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%. REQUIRED: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Prepare the comparative…An analyst is studying the impairment of the manufacturing equipment of WLP Corp.,a U.K.-based corporation that follows IFRS. He gathers the following information aboutthe equipment:Fair value £16,800,000Costs to sell £800,000Value in use £14,500,000Net carrying amount £19,100,000Th e amount of the impairment loss on WLP Corp.’s income statement related to its manufacturing equipment is closest to:A. £2,300,000.B. £3,100,000.C. £4,600,000.Balloon Ltd (Balloon) purchased an item of equipment on 1 July 2015 for $2 million. At that time the useful life of the equipment was assessed to be 10 years, with no residual value. Balloon applies the revaluation model to its equipment. On 30 June 2020 the carrying amount of the equipment was $1 million and the fair value of the equipment was assessed to be $1,100,000. Accordingly, a revaluation gain of $100,000 was recognised. The useful life of the equipment remained at five years. The same equipment is up for revaluation again on 30 June 2023 (three years later) and its fair value is assessed to be $400,000. an impairment loss of $40,000 O an impairment loss of $30,000 O $0 of impairment loss O an impairment reversal of $30,000
- Q Bookworm Co. chose to account for its investment property at fair value. During 2017, Bookworm Co. sold one of its investment properties for €80 million. The fair value of this investment property was €72 million, while its carrying amount on the date of sale was €60 million. How do you determine and recognize the gains or losses resulted from disposals of an investment property carried at fair value? Select the best response, and then click Submit. Gains or losses should be determined as the difference between the fair value and the net disposal proceeds of the asset at the date of disposal, and recognized in profit or loss. Gains or losses should be determined as the difference between the fair value and the carrying amount of the asset at the date of disposal, and recognized in other comprehensive income. Gains or losses should be determined as the difference between the net disposal proceeds and the carrying amount of the asset, and recognized in profit or loss in the period of…A non-current asset has a carrying amount of GHS 20,000. It could be sold for GHS 18,500 with selling costs of GHS 500. Its value in use is GHS 22,000 and its replacement cost GHS 50,000. According to IAS 36 Impairment of Assets, what is the recoverable amount of this asset? A GHS 18,000 B GHS 20,000 C GHS 22,000 D GHS 50,000H7. On January 1, 2016, Wheeler, Inc. purchased some equipment for $3,900. The equipment had an estimated life of five years and an expected residual value of $200. On July 1, 2018, the equipment was sold for $1,000. Wheeler uses straight-line depreciation. What was the amount of the loss or gain recognized in the sale? Group of answer choices $1,000 gain $1,850 gain $1,050 loss $3,900 loss Please show all step by step calculation