User Account

All Pages

Determine carrying amount of PPE as of December

Assignment Help Accounting Basics
Reference no: EM132913556

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: Equipment 1,100,000

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: EM132913556

Questions Cloud

Outline the legislative and regulatory context : When planning your project, outline the legislative and regulatory context requirements including work, health and safety required.
Explain method to help boost metabolism : Explain method to help boost your metabolism. Provide evidence in how this method works and whether there are any risk factors when it comes to your health.
What are the api : What are the API (Australian Property Institute Ltd,) risk management modules and what it helps prevent along with what kind of experiance is requared.
Difference between unsaturated and saturated fat : What is the difference between unsaturated and saturated fat? What are good sources? Which of these sources do you get in your diet?
Determine carrying amount of PPE as of December : The company assessed the recoverable amount of the CGU to be P150,000 greater than its carrying amount. Determine carrying amount of PPE as of December
Explain global business environment : What impacts is climate change currently having, and is projected to have, on the global business environment? What role does business play in producing climate
Describe the purpose of pre-treatment categorical standards : Describe the purpose of pre-treatment categorical standards and how the Environmental Protection Agency (EPA) permit writers use
What is the journal entry on Dec : What is the journal entry on Dec. 31, 2014 to recognized the cash surrender value and adjust the related accounts? Parenthetical solutions would suffice
Explains how to lift a load properly : Explains how to lift a load properly, including a discussion of the forces on various parts of the body when lifting is done incorrectly.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss advantage of using ri in brief

Division A is an investment centre that uses return on investment (ROI) for its performance measure. Management bonuses are also based on ROI.

  What amount was deducted for depreciation

Assuming a 30% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year

  Prepare a bank reconciliation in proper form for august

The correct amount of cheque # 247 is $340, but it was recorded as a cash disbursement of $430. Prepare a bank reconciliation in proper form for August 31, 2015

  Journalize the adjusting entry on December

A patent with an estimated useful economic life of 15 years was acquired for $900,000on August 1. Journalize the adjusting entry on December

  Should hazy days invest in the new pool pump

Should Hazy Days invest in the new pool pump if the NPV approach is used?

  Balance sheet presentations-interest rate

(Bond Theory: Balance Sheet Presentations, Interest Rate, Premium) On January 1, 2014, Nichols Company issued for $1,085,800 its 20-year, 11% bonds that have a maturity value of $1,000,000 and pay interest semiannually on January 1 and July 1. Bon..

  Perform a trend analysis for peabody energy

Perform a trend analysis for Peabody Energy. Explain the many ways trend analysis can be used by managers to make decisions.

  What is the maximum amount Donna can contribute to Roth IRA

Donna, age 42 and a single taxpayer, has a salary of $104,500 and interest income of $20,000. What is the maximum amount Donna can contribute

  Dispositions of capital property during the current year

In compliance with the terms of his divorce agreement, Carl paid deductible spousal support of $600 per month for the entire year

  Create a new worksheet in your workbook

Assessment Case Study - Apply technical knowledge and skills in creating information for the workplace using spreadsheets and relational databases

  Tucki co receives 269083 when it issues a 269083 10

tucki co. receives 269083 when it issues a 269083 10 mortgage note payable to finance the construction of a building at

  What value should the land be recorded in gallatin repair

What value should the land be recorded in Gallatin Repair Service's records? On June 25, Gallatin Repair Service extended an offer of $96,000 for land

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