Reference no: EM132769890
Question -
Part A - Non-current assets held for sale
Limited corp owns a machine which is used to produce herbal medicine. The machine was originally purchased for IDR 50,000,000 on January 1, 2016. The machine has an estimated useful life of 10 years and a residual value of IDR 0.
On July 31, 2018, the company decided to sell the machine and replace it with more modern equipment. Even so, production activities for new machines were stopped on January 1, 2019. On that date, the company had also only been actively marketing machines at a reasonable price. If the machine is sold, the company believes it can get IDR 33,000,000, before deducting the selling cost of 10% of the selling price.
Instructions -
a. At what date can the machinery be reclassified as non-current assets held for sale?
b. What journal is required at the asset reclassification date!
c. As of December 31, 2019, the assets have not been successfully sold. The company decided to return to using the assets in production activities. It is known that the recoverable amount of assets is Rp32,000,000. What journal is required!
Part B - Impairment for non-financial assets
Cantika corp is a cosmetics industry. A company-owned machine was purchased on January 1, 2019 for IDR 50,000,000. The machines are depreciated on a straight line basis over 10 years with no residual value. Machines are typically used to manufacture a brand of whitening cream.
At the end of 2021, the company faced a lawsuit from a customer named Ms. Keyeyi. He claims that the whitening cream product caused his skin to blacken and experience serious irritation.
The lawsuit had a serious impact on product sales. According to the company's research division report, if the machine is still used, the value-in-use arising from the machine is IDR 15,000,000. Conversely, if the machine is sold, the company will receive Rp.18,700,000, before deducting 10% of the selling price for selling costs.
At the end of 2022, the trial process revealed that Ms. Keyeyi's accusations were just hoaxes. The company sued Ms. Kekeyi until she was finally imprisoned. Now, the company estimates that the recoverable amount of the machines is IDR 40,000,000.
Instructions -
a. Determine the amount of the impairment loss that needs to be recognized by December 31, 2021!
b. What entries are required (including depreciation) by December 31, 2021!
c. Determine the amount of impairment loss that needs to be recognized by December 31, 2022!
d. what entries are required (including depreciation) by December 31, 2022!
|
Compute depreciation expense on the machine for the year
: Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021
|
|
Characteristics of successful ig program
: Identification and the introduction of the Principles, and the characteristics of a successful IG program.
|
|
What interest rate must you earn to have
: Suppose you have a 1-year old son and you want to provide $200,000 in 17 years towards his college education. You currently have $20,000 to invest
|
|
Program controls-monitoring-auditing and enforcement
: In policy development, program Controls, Monitoring, Auditing, and Enforcement, we must gather metrics to determine the level of employee compliance,
|
|
Determine the amount of the impairment loss
: Impairment for non-financial assets - Determine the amount of the impairment loss that needs to be recognized by December 31, 2021
|
|
What are the potential benefits and harms
: What are the potential benefits and harms related to your selected practice problem when considering a research-based intervention for your practice change.
|
|
Executive sponsorship is critical to project success
: Executive sponsorship is critical to project success. There is no substitute. Without it, a project is at risk of failure. What is your opinion?
|
|
What amount of earned income credit is she entitled to
: Ariana has an AGI of $38,000 and two qualifying children and is filing as a head of household. What amount of earned income credit is she entitled to
|
|
Identifying potential risks to information
: Information risk planning involves a number of progressive steps: identifying potential risks to information, weighing those risks,
|