Allocate the impairment loss to the net assets

Assignment Help Accounting Basics
Reference no: EM132498335

Question - Teal Mountain Ltd. is a manufacturer of computer network equipment and has just recently adopted IFRS. The wireless division is a cash-generating unit or asset group that has the following carrying amounts for its net assets: land, $18,900; buildings, $29,920; and equipment, $14,080. The undiscounted net future cash flows from use and eventual disposal of the wireless division are $76,600, and the present value of these cash flows is $43,700. The land can be sold immediately for $35,600; however, the buildings and equipment are specialized and cannot be used elsewhere and thus have no resale value.

(a) Allocate the impairment loss to the net assets of the wireless division using the cost recovery model under ASPE.

(b) Allocate the impairment loss to the net assets of the wireless division using the rational entity model under IFRS.

Reference no: EM132498335

Questions Cloud

Prepare adjusting entry related to depreciation of machinery : Prepare the adjusting entries related to: - The depreciation of the machinery, the truck and the computer Office Rent, Supplies expense
Estate Finance Family Tax Plan Question : Estate Finance Family Tax Plan Question - List of transfers made by Mr. Brady in 2019 - In 2016, Mr. Brady loaned Greg Brady $45,000 to start a business
Write paragraph about situation : Write paragraph about situation that bottled water is much safer than tap water
Investigation and diagnosis of physiological disorders : Unit 14 Physiological Disorders and their Care - Examine the investigation and diagnosis of physiological disorders and Investigate the causes and effects
Allocate the impairment loss to the net assets : Allocate the impairment loss to the net assets of the wireless division using the cost recovery model under ASPE
About one thing that important necessity of life : Write paragraph about one thing that important necessity of life, and explain why it is important
Find what is the cost of common stock : $3.50, increasing thereafter at a 7 percent annual growth rate. The corporation's tax rate is 34 percent. What is the cost of common stock?
Calculate the Shays gross income for the year : Shay is a full-time student at Yellowstone University and is claimed by her parents as a dependent. Calculate the Shays gross income for the year
Establishing the fount of all life as a certifiably : Consumers spent more than $11.8 billion on bottled water last year, establishing the fount of all life as a certifiably hot commodity

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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