In 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?
Q: Presented below is information related to copyrights owned by Yaeger Corporation at December 31,…
A: Amortization expense refers to the account that estimates the cost of long term assets such as…
Q: The following balances were reported by ABC Co. at December 31, 2020 and 2019: 12/31/20 P2,600,000…
A: Cost of Goods Sold- Cost of goods sold refers to the cost of services and goods which are sold…
Q: January 1, 2017, BMB Corporation acquired machinery at a cost of ₱500,000. BMB adopted the…
A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors A change in method of…
Q: Martinez Company owns equipment that cost $1,053,000 and has accumulated depreciation of $444,600.…
A: Computation of impairment loss:
Q: Coronado Industries owns machinery with a book value of $566000. It is estimated that the machinery…
A: Solution: higher of future cadh flows or fair value = 615000 Book value = 566000 Since book value is…
Q: How much is the loss/gain on classification of the old machinery as held for sale? What is the…
A: Loss on the classification of the old machinery as held for sale is P 3.2 million. Journal entry to…
Q: Jung Inc. owns a patent for
A: Under US GAAP, if the carrying value (book value) is greater than undiscounted expected future cash…
Q: On December 31, 2022, Belt Enterprises must measure its impairment loss for plant and equipment.…
A: Impairment loss occurs when the carrying value of an asset is higher than the recoverable value of…
Q: Sunland Company owns machinery with a book value of $768000. It is estimated that the machinery will…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: In 2015, Zee Tee Inc. acquired production machinery at a cost of $640,000, which now has a…
A: The objective of the question is to calculate the amount that Zee Tee Inc. should recognize as a…
Q: Bramble Corp. owns machinery with a book value of $582000. It is estimated that the machinery will…
A:
Q: Jurassic Company owns equipment that cost $900,000 and has accumulated depreciatio flows from the…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: Blossom Corporation uses the cost model to account for its property, plant, and equipment, which…
A: Straight-line depreciation evenly spreads the cost of an asset over its useful life, reducing its…
Q: In 2015, Winnebago Industries recorded an impairment loss of $462,000 on its corporate plane. Assume…
A: Fair value is the value of the asset after deducting impairment loss from carrying value. Carrying…
Q: In 2015, Bambung Corporation acquired production machinery at a cost of £416,000, which now has a…
A: The objective of the question is to calculate the amount of loss on impairment that Bambung…
Q: Crane Corporation owns machinery with a book value of $574000. At fiscal year-end 2026, is estimated…
A: Lets understand the basics.When recoverable amount of an asset is less than the book value of asset…
Q: In 2015, DimDung Company acquired production machinery which now has a book value of ¥745,000. The…
A: The objective of the question is to determine the carrying value of the machinery after an…
Q: On 1 January 2019, ABC, Inc. decided to replace its existing machinery which it had acquired on 1…
A: Replacement of Old machinery- 01-01-2019 Purchase of Old machinery=01-01-2016 New machinery…
Q: In 2009, Cilla Company acquired production machinery at a cost of $420,000, which now has…
A: The objective of the question is to calculate the amount that Cilla should recognize as a loss on…
Q: Mr. Wonder purchased a machine amounting to P7,000,000 on January 1, 2013 providing the newest kind…
A: Step 1 Noncurrent assets held for sale are those assets if they are held for immediate sale in a…
Q: Shamrock Inc. owns equipment that cost $470,000 and has accumulated depreciation of $122,000. The…
A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…
Q: Marigold Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200. The…
A: As per IFRS/IAS 36 Impairment of Assets, An asset is said to be impaired when it's carrying amount…
Q: Sheffield Corporation purchased equipment for $749,000 in 2025. Two years was accumulated…
A: Purchase cost = $749,000 Accumulated depreciation = $249,000 Fair value = $450,000
Q: Toro Co. has equipment with a carrying amount of$700,000. The expected future net cash flows from…
A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…
Q: ccount Titles and Explanation Debit Credit enter an account title enter a debit amount enter a…
A: Impairment means to bring the book value of your assets to the fair market value of the asset. The…
Q: In 2022, Mao Li Corporation determined that a production machine used in its operations was impaired…
A: Under IFRS, the gain due to the increase in fair value of the production machine in 2023 would be…
Q: (Fair Value Estimate) Killroy Company owns a trade name that was purchased in an acquisition of…
A:
Q: An asset group is being evaluated for an impairment loss. The following financial information is…
A: The impairment loss is calculated by deducting the fair value from the carrying value of the asset…
Q: Required: (round all dollars amounts to the nearest whole dollar, and round the diminishing balance…
A: Depreciation: A reduction in the value of fixed asset pertaining to a charge is known as…
Q: After recording depreciation for the current year, Media Mania Incorporated decided to discontinue…
A: Loss on impairment = carrying value - Recoverable amount Where, Recoverable amount = Lower of fair…
Q: In 2018, Batman Company ( an IFRS reporter) acquired equipment at a cost of $620,000. The balance of…
A: As per IAS 36 Impairment of assets Recoverable amount is greater of 1.Fair value less cost to sell…
Q: Tamarisk Inc. owns equipment that cost $ 638,000 and has accumulated depreciation of $ 165,000. The…
A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, The…
Q: (Impairment) Roland Company uses special strapping equipment in its packaging business. The…
A: (a) Prepare the journal entry (if any) to record the impairment at December 31, 2017.
Q: Sage Hill Inc. owns equipment that cost $594,000 and has accumulated depreciation of $154,000. The…
A: Impairment loss occurs when the carrying value is less than the recoverable amount.
Q: Wildhorse Company owns equipment that cost $1,062,000 and has accumulated depreciation of $448,400.…
A: Impairment loss refers to an amount that is more than the recoverable amount from the carrying value…
Q: Should the entity decide to continue to use the asset, remaining life will be 5 years. The discount…
A: Impairment Loss: = Carrying Value of an Asset - Recoverable Amount of such Asset. Recoverable…
Q: 1. MadDog Inc. owns equipment for which it paid $85 million. At the end of 2020, it had accumulated…
A: a. Calculation of Impairment Loss of MadDog Inc. 1. Carrying Value of Equipment at the end of…
Q: Acme Corp.
A: The monetary Accounting Standards Board (FASB) could be a personal standard-setting body[1] whose…
Q: Cullumber Corporation owns equipment with a cost of $294900 and accumulated depreciation at December…
A: When the estimated future cash flows of an asset are lower than its book value, we recognize that…
Q: Ashvinn
A: The objective of the question is to determine if there is an impairment loss on the equipment owned…
Q: On January 1, 2020, due to the unexpected advances in technology, Claro Co. realized that its…
A: Impairment loss = Carrying amount - recoverable amount Recoverable amount is higher of fair value…
Q: Shamrock Inc. owns equipment that cost $605,000 and has accumulated depreciation of $157,000. The…
A: Every fixed asset loses out its value over a period of time. This reduction in value will be…
Q: Swifty Corporation owns machinery with a book value of $575000. It is estimated that the machinery…
A: According to the applicable standard, IAS 36, the impairment loss is treated as a revaluation…
Q: On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment.…
A: A sustained decrease in an asset's value is referred to as impairment in accounting. It might be…
In 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?
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Concord Corporation owns machinery with a book value of $563000. It is estimated that the machinery will generate future cash flows of $608000. The machinery has a fair value of $425000. Concord should recognize a loss on impairment of?In 2016, TallyHo Farms acquired production machinery at a cost of £430,000. In 2019, when accumulated depreciation was £180,000, Bambung reported an impairment loss of £78,000. Now, in 2023, the machinery has a book value of £142,000. The fair value less selling costs of the machinery is £273,000 and its value in use is £215,000. During impairment testing, Bambung recognized the possibility of a reversal of the previous impairment loss. What amount, if any, should Bambung recognize as a reversal of impairment loss under IFRS? Group of answer choices £58,000 £131,000 £73,000 £78,000 PreviousNextWildhorse, Inc. purchased equipment in 2024 for $901000. Two years later it became apparent to Wildhorse that this equipment had suffered an impairment of value. In early 2026, the book value of the asset is $585000 and it is estimated that the fair value is now only $359000. The entry to record the loss on impairment is O No entry is necessary as a write-off violates the historical cost principle. Retained Earnings 226000 Reserve for Loss on Impairment. Loss on Impairment Accumulated Depreciation-Equipment Retained Earnings Accumulated Depreciation-Equipment 226000 226000 226000 226000 226000
- The management of Bonita 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 $981,000 with depreciation to date of $436,000 as of December 31, 2025. On December 31, 2025, management projected its future net cash flows from this equipment to be $327,000 and its fair value to be $250,700. The company intends to use this equipment in the future. (a) Prepare the journal entry (if any) to record the impairment at December 31, 2025. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Date Dec. 31 Account Titles and Explanation eTextbook and Media List of Accounts Debit CreditWindsor Company owns equipment that cost $972,000 and has accumulated depreciation of $410,400. The expected future net cash flows from the use of the asset are expected to be $540,000. The fair value of the equipment is $432,000.Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amountAF’s property, plant, and equipment is reported at cost. The company has a policy ofnot revaluing property, plant, and equipment. Suppose AF decided to revalue its flightequipment on December 31, 2015, and that the fair value of the equipment on that datewas €10,000 million. Prepare the journal entry to record the revaluation, assuming thatthe journal entry to record annual depreciation had already been recorded. (Hint: youwill need to locate the original cost and accumulated depreciation of the equipment atthe end of the year in the appropriate disclosure note.)
- Corning Industries owns a patent for which it paid $77,000. At the end of the current year, accumulated amortization on the patent totaled $14,000. Due to adverse economic conditions, Corning’s management determined that it should assess whether an impairment loss should be recognized for the patent. The estimated undiscounted future cash flows to be provided by the patent total $45,000, and the patent's fair value is $30,000. (a) What is the amount of the impairment loss, if any, on the patent at the end of the current year? (b) What is the book value of the patent after any impairment loss is recorded?Novak Corp., a small company that follows ASPE, owns machinery that cost $925,000 and has accumulated depreciation of $385,000. The undiscounted future net cash flows from the use of the asset are expected to be $513,000. The equipment's fair value is $440,000. Using the cost recovery impairment model, prepare the journal entry, if any, to record the impairment loss. (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 Debit CreditOn 1 January 2019, ABC, Inc. decided to replace its existing machinery which it had acquired on 1 January 2016 for P40 million and initiated process for acquisition of new machinery. Simultaneously, it also initiated efforts to sell of the old machinery. The new machinery was commissioned on 30 March 2019. The company depreciates machinery assuming a zero residual value and 5-year total useful life. The carrying value of old machinery as at 1 January 2019 worked out to P16 million. If the fair value of the old machinery is P12 million and it would cost 10% of the sale proceeds to close the deal, find out when the company should classify the machinery as held-for-sale. 1.) What is the journal entry to record the reclassification? 2.) How much is the total depreciation expense to be recognized for 2019?
- A company owns a patent for which it paid $75 million. At the end of 2024, it had accumulated amortization on the patent of $15 million. Due to adverse economic conditions, the company's management determined that it should assess whether an impairment loss should be recognized for the patent. The estimated undiscounted future cash flows to be provided by the patent total $40 million, and the patent's fair value at that point is $30 million. Under these circumstances, the company would reporAn asset group is being evaluated for an impairment loss. The following financial information is available for the asset group: Carrying Value=100,000,000 Sum of the undiscounted cash flows= 95,000,000 Fair value= 80,000,000 Carrying Value= $100,000,000 What is the value of the impairment loss?Dina Corporation owns machinery with a book value of $635,000. It is estimated that the machinery will generate future cash flows of $600,000. The machinery has a fair value of $420,000. Dina should recognize a loss on impairment of 15.