Impaired loss = Carrying amount - Recoverable value
= 1270000 - 975000
= $295000
The following information is available for Blossom Company's patents: $2790000 1270000 Cost Carrying amount Expected future...
Gravy Incorporated owns patents with a book value of $190,000. Expected future cash flows of $210,000 is estimated. The patent has a fair value of $140,000. How much, if any, Is the impairment loss? Explain your response.
1. The following information is available for a Gables Enterprise's machinery: Cost $ 283,000,000 Accumulated depreciation 133,000,000 Estimate of the total cash flows 110,000,000 Present value of estimated future cash flows 94,000,000 Estimated fair value determined by appraisal 140,000,000 1 What is the impairment loss that Gables would report at December 31 a. $40,000 b$ 16,000 c. $56,000 d. $10,000 2. In 2017, Ana Inc, had acquired Demski Co and recorded goodwill of $245 million as a result. The net...
Sunland Corporation owns a patent that has a carrying amount of
$648,000. Sunland expects future net cash flows from this patent to
total $405,000. The fair value of the patent is $502,200.
Prepare journal entry, if necessary, to record the loss on
impairment. (Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
Coronado Company owns equipment that cost $1,008,000 and has accumulated depreciation of $425,600. The expected future net cash flows from the use of the asset are expected to be $560,000. The fair value of the equipment is $448,000. Prepare the journal entry, if any, to record the impairment loss.
Ayayai Corporation owns a patent that has a carrying amount of $250,000. Ayayai expects future net cash flows from this patent to total $200,000. The fair value of the patent is $130,000. Prepare Ayayai's journal entry to record the loss on impairment. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit
Chrispian Cookies, Inc. is reviewing all available information regarding the future use of its baking equipment, which it intends to use for the foreseeable future. The information indi-cates that this equipment may be obsolete and could be impaired. Chrispian acquired the equipment three years ago at a cost of $ 9,000,000 and depreciated it using the straight- line method with an estimated residual value of $ 1,800,000 and an eight- year useful life. At the end of the third year,...
Splish Company owns equipment that cost $1,116,000 and has accumulated depreciation of $471,200. The expected future net cash flows from the use of the asset are expected to be $620,000. The fair value of the equipment is $496,000. 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...
Jurassic Company owns machinery that cost $900,000 and has accumulated depreciation of $380,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair value of the machinery is $400,000. 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...
Page < 2 > of 4 0 9. Torque Co. has equipment with a carrying amount of $2,400,000. The expected future net cash flows from the equipment are $2,445,000, and its fair value is $2,040,000. The equipment is expected to be used in operations in the future. What amount (if any) should Torque report as an impairment to its equipment? A) No impairment should be reported. B) $360,000 C) $45,000 D) $405,000 Page 2
Coffee Company Limited has a trademark with a carrying amount of $83,750, and expected useful life of 15 years. As part of an impairment test on December 31, 2020, due to a change in customer tastes, Coffee Company gathered the following data about the trademark for the purposes of an impairment test: fair value $45,000; fair value less costs to sell $40,000; value in use $95,200; and undiscounted future cash flows $125,000. Assume that Coffee Company is reporting under IFRS....