on january 1, 2017 super grant company purchased equipment with cost of 12,000,000 useful life of 5 years and no residual value. the company use 150% declining balance method of depreciation. On December 31, 2017 and 2018, the company determined that impairment indicators are present. there is no change in useful life or residual value fair values dec. 31 2018, 4,9000,000 and December 31 2017 7,200,000 Value in use dec. 31 2018, 4,775,000 and December 31 2017 7,500,000 What is the impairment loss for 2017? What is the gain on reversal of impairment for 2018? What is the Depreciation for 2018 and 2019 respectively
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
on january 1, 2017 super grant company purchased equipment with cost of 12,000,000 useful life of 5 years and no residual value. the company use 150% declining balance method of
On December 31, 2017 and 2018, the company determined that impairment indicators are present. there is no change in useful life or residual value
fair values dec. 31 2018, 4,9000,000 and December 31 2017 7,200,000
Value in use dec. 31 2018, 4,775,000 and December 31 2017 7,500,000
What is the impairment loss for 2017?
What is the gain on reversal of impairment for 2018?
What is the Depreciation for 2018 and 2019 respectively
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