Calculate the different financial implications

Assignment Help Managerial Accounting
Reference no: EM133010612

Question - On 1 January 2018, Excel-Purchase Limited acquired a machine with an estimated useful life of 10 years at $1,600,000 (with no residual value and depreciated at straight-line basis). After the receipt of the machine 10 days later, Excel-Purchase decided to sell it. The planned disposal fulfilled the criteria under IFRS 5 and the fair value less estimated costs to sell is also around $1,600,000.

At year end of 2018, Excel-Purchase decides to withdraw the sale and use the machine for its own use. At that date, Excel-Purchase estimates that the recoverable amount may be (1) $1,500,000, or (2) $1,200,000.

Calculate the different financial implications from the two estimates of the recoverable amount.

Reference no: EM133010612

Questions Cloud

Calculate the contribution margin and breakeven point : Assume that two companies, Brake, Inc. and Carbo, Inc., have the following operating results: Calculate the contribution margin and breakeven point
Development of solutions for identified workplace problems : What is 1 (one) advantage and 1 (one) risk involved in the development of solutions for identified workplace problems?
Part of the consultation process : 1. Imagine that you are planning a consultation event in your organisation as part of a change program to introduce the change project of Australia Post.
Different terms used to identify native americans : 1. What are the different terms used to identify Native Americans? 2. In what year did the Native Americans granted citizenship rights?
Calculate the different financial implications : At that date, Excel-Purchase estimates that the recoverable amount may be (1) $1,500,000, or (2) $1,200,000. Calculate the different financial implications
What the total amount reported in the cash flows : If a gain of $10,000 is incurred in selling (for cash) office equipment having a book value of $100,000, what the total amount reported in the cash flows
Graduate of financial and finding job : 1. Finding hiring ads that you want to apply and taking a picture or copy their ads
Describe communication experience : Describe your communication experience while working in a Bank and how it helped you in the business world.
Identify interventions that will help override errors : Identify interventions that will help override errors in judgment and decision making

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Solve the minimum number of jars of silver polish

Solve the minimum number of jars of silver polish that would have to be sold to justify further processing of Grit 337. Juarez Corporation produces cleaning

  Do think investment advisors are giving good advice

Stocks have risen in value during 106 of the 147 years since the market began in 1872. Do you think these investment advisors are giving good advice?

  Prepare a cash budged for july and aug

Sales are 20% cash and 80% credit. Prepare a cash budged for july and aug including a total column for the two month period and corect tittle

  What would you show the restaurant owner to change

The restaurant owner refuses because he says that he would lose on average $0.60 per meal. Is he correct? What would you show the restaurant owner to change

  Provide the maintenance efficiency variance

You have standard of 5 minutes of machine time per unit produced and $20 of maintenance cost per hour. Provide the maintenance efficiency variance

  What was the segment margin for the south segment

Fixed expenses of $40,000 and $3,7000 of common fixed costs were allocated to the south segment, what was the segment margin for the south segment?

  What budgeted sales for the month is

What Budgeted sales for the month is. Budgeted production and sales information for Flushing Company for the month of December.

  Find how many units did produce

Net income under variable costing was $11700 and $15700 under absorption costing last year. EKP sold 22500 units. How many units did it produce?

  What is the company book value per share at end of year

What is the company's book value per share at the end of Year 2? What is the company's dividend payout ratio for Year 2? What is the company's earnings

  What amounts a performance report for company compare

Actual production in 2019 was 175000 units. To be most useful, what amounts should a performance report for this company compare?

  Which the lowest priority item on the list would be to

Which the lowest priority item on the list would be to? You want to improve your social media ad's click-through rate, so you make a list of all the things you

  What are the importance of the cost volume profit analysis

What are the importance of the Cost Volume Profit Analysis inside the business cycle? How can a small medium enterprises apply CVP to their business?

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