User Account

All Pages

Accumulated depreciation on equipment

Assignment Help Financial Accounting
Reference no: EM13911943

Flat Inc. owns equipment for which it paid 90 million. At the end of 2015, accumulated depreciation on equipment was 27 million. Due to adverse economic conditions, plant management determined that it should assess whether impairment should be recognized for the equipment. The estimated future cash flows (w/o discounting) to be provided by the equipment total 60 million, and it's fair value at that point is 40 million. Under these conditions plant;

a) record no impairment for loss on equipment

b) record 3 million impairment loss on equipment

c) record 23 million impairment loss on equipment

d) record 30 million impairment loss on equipment

Reference no: EM13911943

Questions Cloud

Affected by the entitys bank loan increases or decreases : For which of the following entities is the owner's basis increased by the owner's share of profits and decreased by the owner's share of losses, but is not affected by the entity's bank loan increases or decreases?
How tall was the pole before the windstorm : During a windstorm, part of the top of a flagpole breaks off. The broken top portion touches the ground at an angle of [c]5° 1[e] feet from its base, How tall was the pole before the windstorm
Income tax return for an corporation : Which of the following items must be separately stated on Form 1120S, U.S. Income Tax Return for an S Corporation, Schedule K-1?
What is the relative value : Please draw out two reaction energy diagrams, one in which the reaction is exothermic, and the other in which the reaction is endothermic. What is the relative value of ΔH in each case?
Accumulated depreciation on equipment : Flat Inc. owns equipment for which it paid 90 million. At the end of 2015, accumulated depreciation on equipment was 27 million. Due to adverse economic conditions, plant management determined that it should assess whether impairment should be recogn..
Bank reconciliation adjustment : Bank reconciliation adjustment. Refer to Mini Exercise 5.1.In Mini Exercise 5.1, The balance in Happ, Inc.'s general ledger Cash account was $12,430 at September 30, before reconciliation.
What proportion of the fire claims are fraudulent : Construct a contingency table summarizing the claims data. Use the pairs of events FIRE and FIRE, FRAUD and FRAUD. What proportion of the fire claims are fraudulent?
What is the average inventory balance : Consider order costs are $20 and holding costs $2 per unit. The firm uses 200,000 units in a year. What is the EOQ? Given the EOQ you calculated, how many orders should be placed and what is the average inventory balance?
Reading on the thermometer : Why can the ethanol be used as a fuel in the spirit burner? After about ten minutes, the reading on the thermometer is checked. What should one observe?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the firm''s weighted average cost of capital

Determine the firm's weighted average cost of capital using book value weights.   Explain how the firm can use the cost in the investment decision-making process.

  Record the transaction will consist of a debit to cash

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to:

  The average net accounts receivable

e-Shop, Inc. has net sales on account of? $1,500,000. The average net accounts receivable are? $610,000. Calculate the? days' sales in receivables.?

  Supplier of boating equipment for the states

Douglas Boats is a supplier of boating equipment for the states of Oregon and Washington. It sells 5,000 White Marine WM-4 diesel engines every year. How much would it be worth for the company to make the expansion? Assume demand is constant througho..

  National health corporation

18.   National Health Corporation (NHC) has a cumulative preferred stock issue outstanding, which has a stated annual dividend of $8 per share. The company has been losing money and has not paid preferred dividends for the last five years. There are ..

  What allocation should have been assigned to the subsidiary

If Utah paid $300,000 in cash for Trimmer, what allocation should have been assigned to the subsidiary's Building account and its Equipment account in a December 31, 2011 consolidation?

  Illustrate what entries would be made in record the current

Illustrate what entries would be made in 2011 to record the current and deferred income taxes and to recognize the loss carryforward? (Assume that at the end of 2011 it is more likely than not that the deferred tax asset will be realized.)

  Question 38alladin company purchased machine 201 on may 1

question 38alladin company purchased machine 201 on may 1 2012. the subsequent information relating to machine 201 was

  Compute the manufacturing cost for august

Arnold Corporation uses a job order costing system and applies manufacturing overhead using a predetermined overhead rate based on direct labor hours. Compute the manufacturing cost for August :

  What gain or loss is recognized by the corporation

What gain or loss is recognized by the corporation when it issues its shares to Dave? What is the basis to the corporation of the property it received from Dave?

  Expected sales revenues for the coming year

Harriman Entertainment produced and sold 140,000 video games for $15 each last year. Demand is strong for the company's video games, and Harriman believes that volume will increase by 25 percent even if the company increases the game price by 20 perc..

  Prepare the entry to record the accrued interest

Assuming that all the investments are classified as available-for-sale, use the spreadsheet Journal Entries to prepare the journal entries necessary to classify the amounts into the proper accounts. Prepare the entry to record the accrued interest ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd