Calculate depreciation expense for year 2013

Reference no: EM13127937

A company acquired a new high-tech printing press on January 1, 2011, for $90,000. At that time, the company estimated the press would have a six-year life and salvage value of $6,000. The company uses the straight-line depreciation method for all its equipment. In December 2012, a newer high-tech printing press is introduced in the market. The company controller is concerned that the value of the press may be impaired. The controller has provided you with the following data as of December 2012 and asked you to determine if there is any impairment using US GAAP or IFRS. If there is any impairment, please provide the journal entries. Additionally, as part of the 2013 budget process, the controller has asked you to calculate depreciation expense of the press using both US GAAP and IFRS.
? Scrap value should be reduced to $4,000.
? Expected future undiscounted cash flows from operating the press are $51,000.
? Discounted net present value of expected cash flows from the press is $49,000.
? Fair value of the press at December 31, 2012, is $45,000 and selling costs are minimal.

I need the following:

a.) if there is any impairment using US GAAP or IFRS
b.) provide the journal entries for either US GAAP or IFRS if there is any impairment
c.) Calculate depreciation expense for year 2013

Reference no: EM13127937

Questions Cloud

What is the amount of gain recognized by rosa, arvid : Rosa owns 30% of Pine Corporation's stock (basis of $50,000), and the other 70% was recently purchased by Arvid (basis of $620,000). Pine enters into a reorganization with Lodgepole Corporation.

Illustrate what areas seemed familiar to you : It's also important because it affects all of us, in one way or another, in our daily life. After R5 and R6 coverage of the UCC, illustrate what areas seemed familiar to you because of personal experiences?

The role of the mother : The topic now will be : make in evidence the sorrow of a mother or the role of the mother by comparing the poem "The mother" of Gwendolyn Brooks and "Filling Station" of Elizabeth Bishop.This should be a five pages paper.

Find probability to answer all questions correctly : Assuming that Richard guesses on all eight questions, find the indicated probabilities. What is the probability that he will answer all questions correctly?

Calculate depreciation expense for year 2013 : A company acquired a new high-tech printing press on January 1, 2011, for $90,000. At that time, the company estimated the press would have a six-year life and salvage value of $6,000.

Determine the initial pressure of nitrogen : 2.00 L of H2 at a pressure of 368 torr and 1.00 L of N2 at an unknown pressure. If the total pressure in the flasks is 336 torr after the stopcock is opened.

Illustrate what is meant by standardized data : What is the manager’s responsibility in comparing data? What are the four common uses of comparative data? Illustrate what is meant by standardized data?

Establish an investment program : Two parents have decided to establish an investment program. They estimate it will cost $40,000 per year for four years. Their investment program will earn them 10 % over the years. How much do they have to deposit for a lump sum?

What amount of cash did mathews have to pay : Mathews Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,000. Accumulated depreciation at the time of the trade-in amounted to $34,000. The new bus cost $65,000, but Mathews was given a trade-in allowance of..

User Account

All Pages