FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- 5arrow_forwardFrom page 7-2 of the VLN, intangible assets are long term assets and would NOT include: Group of answer choices A. Goodwill B. Natural gas C. Patents D. Copyrightsarrow_forwardQuestion 11 A cash-generating unit comprises the following assets: £000 700 200 90 20 1,010 Building Plant and equipment Goodwill Current assets Following an impairment review it was discovered that an item of plant carried at £40,000 is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £750,000. Required: What will be the carrying amount of the building after the impairment loss has been recognised (to the nearest £000).arrow_forward
- 17 Equipment that cost 412000 and on which 191000 of accumulated depreciation has been recorded was disposed of for 181000 cash. The entry to record this event would include a ?arrow_forwardMini-Exercise 6-3 (Static) Capitalizing versus expensing LO 6-2 Stucki Holdings Corporation incurred the following expenditures: $5,700 cost to replace the transmission in a company-owned vehicle; $19,300 cost of annual property insurance on the company's production facilities; $15,100 cost to develop and register a design patent; $25,400 cost to add a security and monitoring system to the company's distribution center; $700 cost to repair paint damage on a company-owned vehicle caused by normal wear and tear. Required: Which, if any, of these expenditures should be capitalized? Note: Select all that apply. Check All That Apply $5,700 $15,100 $25,400 $19,300arrow_forwardA cash-generating unit comprises the following assets: £000 Goodwill 440 Land 2,560 Plant and equipment 800 3,800 One of the pieces of equipment, carried at £160,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £3,000,000. What will be the carrying amount of the land after the impairment loss has been recognised? a. £2,111,472 b. £2,285,716 c. £2,021,052 d. £2,400,000 e. £300,000arrow_forward
- The following schedule reflects the incremental costs and revenues for acapital project. The company uses straight-line depreciation. The interestexpense reflects an allocation of interest on the amount of this investment,based on the company’s weighted average cost capital:Revenues $650,000Direct costs $270,000Variable overhead 50,000Fixed overhead 20,000Depreciation 70,000General & administrative 40,000Interest expense 8,000458,000Net profit before taxes $192,000══════The annual cash flow from this investment, before tax considerations, would be:arrow_forwardonly need d and e , thanksarrow_forwardRequired information Problem 10-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. View transaction list Journal entry worksheetarrow_forward
- Sagararrow_forwardMachinery Purchased for $ 800000 Accumulated depreciation value is $ 600000 Sold for $400000 Determine the gain or loss on Disposalarrow_forwardImpairment is defined as a reduction in the value of a company asset, whether fixed or intangible which decline the asset's quality, quantity, or market value. (a) The carrying amount of a machinery is RM525,000. This consists of goodwill of RM75,000, development costs of RM150,000 and machinery of RM300,000. The machinery has a recoverable amount of RM330,000. Calculate the carrying amount of the machinery after the impairment loss has been allocated.arrow_forward
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