User Account

All Pages

Determine carrying amount of PPE as of December

Assignment Help Financial Accounting
Reference no: EM132913299

Question - On December 31, 2019, one of the CGU's of A Company was assessed to be impaired. The carrying amount of the assets of the unit were as follows as of this date:

Cash 100,000

Inventory 400,000

Receivables 200,000

Allowance for estimated credit losses 25,000

PPE: Building 2,100,000

Accumulated depreciation (acquired 3 years ago) 900,000

PPE: Equipment1,100,000

Accumulated depreciation (annual depreciation P225,000) 200,000

Goodwill 75,000

The value in use of the CGU was determined to be P2,675,000. The receivables are considered to be collectible up to its carrying amount.

During 2020, in relation to the impairment, the company increased depreciation charges of the building and equipment to P325,000 and P250,000, respectively. The beginning inventory on hand were completely sold during the year. There were no outstanding receivables at the end of 2020.

At December 31, 2020, the company assessed the recoverable amount of the CGU to be P150,000 greater than its carrying amount.

Required - Determine carrying amount of PPE as of December 31, 2020.

Reference no: EM132913299

Questions Cloud

Define motivation : Describe a company personnel policy from your personal experience that you believe has had a negativeaffect your performance at work.
Discuss differences between the cost and revaluation model : Discuss the differences between the Cost model and the Revaluation model. Provide a recommendation in your conclusion
Most important elements of teamwork in business : What are the most important elements of teamwork in business? What events or situations helped you to come to these conclusions?
Write applications for both the web and for local devices : Web development comes with its own unique set of issues and problems. After doing some research on the Internet, describe three coding issues
Determine carrying amount of PPE as of December : The value in use of the CGU was determined to be P2,675,000. Determine carrying amount of PPE as of December 31, 2020
How does each attack surface - protections in the presence : How does each attack surface - its protections if any, in the presence (or absence) of active threat agents and their capabilities, methods
Evaluate the project using discounted payback : The marginal tax rate is 30%. The cost of capital for the project is 11%. Evaluate the project using discounted payback
What is the journal entry to record the dishonored note : Assuming the customer failed to pay the notes on December 31, 2022, what is the journal entry to record the dishonored note
Identify one cryptographic attack : Identify one cryptographic attack and how you can protect against it. Malicious individuals have discovered several methods to attack and defeat cryptosystems.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Design capital structure which more yield profitability

Design an appropriate capital structure which yield more profitability for a service industry. Illustrate your answer with the help of EBIT-EPS analysis.

  Compute the amount of amortization for this equipment

Compute the amount of amortization for this equipment for all of the 4 years, using Straight Line, UOP, and DDB method

  What is the project PI

You are considering a project with an initial cash outlay of $160,000 and expected free cash flows of $40,000. What is the project PI

  Immaterial transactions to minimize the effect on output

Normally, auditors using the ITF technique enter immaterial transactions to minimize the effect on output.

  What payments must zach taylor make to settle

What payments must Zach Taylor make to settle the loan at the interest rate of 9%, but with the 6 payments beginning on the day the loan is signed?

  Journalize the entries required by the reconciliation

Prepare the adjusting entry necessary as a result of the physical count Account - Description Debit Credit and compute the ending inventory

  What is the average salary advantage that cmas have

What is the average salary advantage that CMAs have? What is your understanding of the difference between a CMA and a CPA certification?

  Prepare balance sheet and retained earnings statement

Prepare in good form the condensed (1) balance sheet and (2) income statement and Retained Earnings Statement for the year ending December 31,2003.

  Determine amount of impairment loss for black jack ltd

Determine the amount of the impairment loss, and provide the journal entry necessary to recognise any impairment in the machine

  Make consolidated income statement for panda corporation

Make Consolidated income statement for Panda Corporation and Subsidiary for the year ended December 31, 2019. Show all your calculations.

  Record accrued and unpaid employee wages

A company forgot to record accrued and unpaid employee wages of $350,000 at period-end. This oversight would Understate net income by $350,000.

  A sole proprietorship. he transfers the assets having

a sole proprietorship. He transfers the assets having a $250,000 basis and a FMV of $800,000 and liabilities of $475,000 in exchange for all of the stock of Newco, Inc. Can Able avoid Sec. 357(c) gain by issuing to Newco his unsecured personal promis..

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