User Account

All Pages

Determine the amount of impairment that should be recorded

Assignment Help Accounting Basics
Reference no: EM132782971

Question - Adam's Bikes produces specialized bicycle frames. The production process uses two machines, which together form a cash generating unit (CGU). The following information is relevant to the evaluation of impairment for these machines. Bending machine Welding machine Total CGU Net carrying value 550,000 450,000 1,000,000 Fair value less costs to sell 380,000 See requirement See requirement Value in use 950,000.

Required -

a) Assume that the welding machine has a fair value less costs to sell of $420,000. Determine the amount of impairment that should be recorded for the cash generating unit and for each of the two machines.

b) Assume that the welding machine has a fair value less costs to sell of $455,000. Determine the amount of impairment that should be recorded for the cash generating unit and for each of the two machines.

Reference no: EM132782971

Questions Cloud

Spotlight on i-o theory and practice : Reflect on what you have learned over the course of the Master of Arts: Industrial Organizational Psychology (MAIO) program
Analyze how the pa can be applied to a training effort : In this homework assignment, you will develop a table on performance appraisals (PA) and how they are applied to training. In column 1, identify three different
Hotel industry sustainability : Identify a current issue (sustainability,go green,such as energy, water, waste, ect) or trend related to facilities management in the hospitality industry.
Identify the types of questions that you could ask client : Your HR consulting organization has been approached by a potential client who wants to move to a new version of their existing computerized human resource.
Determine the amount of impairment that should be recorded : Determine the amount of impairment that should be recorded for the cash generating unit and for each of the two machines
Applying critical and creative thinking in daily life : we use critical and creative thinking to solve problems. This assignment asks you to look at your own life and understand the way you solve problems.
Briefly explain the reasons for your rating : HR is expected to contribute to the success of an organization. On a scale of 1 to 10 (1 being "not very effective" and 10 being "very effective").
Three primary tools of cost-benefit analysis : Compare and contrast two of the three primary tools of cost-benefit analysis: net present value (NPV), internal rate of return (IRR), and payback period (PB).
Assess global human resource policies and practices : Analyze and assess global human resource policies, practices, and functions in order to meet an organization's goals and objectives while maintaining.

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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