User Account

All Pages

Determine the amount of the impairment loss

Assignment Help Accounting Basics
Reference no: EM132785644

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:

problem a. Determine the amount of the impairment loss that needs to be recognized by December 31, 2021!

problem b. what entries are required (including depreciation) by December 31, 2021!

problem c. Determine the amount of impairment loss that needs to be recognized by December 31, 2022!

problem d. what entries are required (including depreciation) by December 31, 2022

Reference no: EM132785644

Questions Cloud

Germination of clostridium botulinum endospores : - What conditions encourage the germination of Clostridium botulinum endospores?
Calculate the amortization expense of the entity : The entity paid $100,000 for paving the land. It was ready for its intended use on May 31, 2000. Calculate the amortization expense of the entity
What the share premium account is credited for : What the share premium account is credited for? On June 26, 2019. Rosada Corp. issues a 30% share dividend on its 200,000 shares of Pio par value
How much must Charlie save annually : Using an interest rate of 10%, how much must Charlie save annually during year end in order to have his retirement annuity 30 years from now
Determine the amount of the impairment loss : Cantika corp is a cosmetics industry. Determine the amount of the impairment loss that needs to be recognized by December 31, 2021.
Prepare schedule of projected monthly cash receipts : Cash Receipts Budget - Prepare schedule of projected monthly cash receipts for the last quarter of the current year
What date can the machinery be reclassified as non-current : What date can the machinery be reclassified as non-current assets held for sale? Limited corp owns a machine which is used to produce herbal medicine.
What total transaction price allocated to the planners : What Total transaction price allocated to the planners? Sales of coffee were 20,000 cups with a total price of P18,000,000 while the number of planners
What amount of earned income credit is : Ariana has an AGI of $38,000 (all from earned income) and two qualifying children and is filing as a head of household. What amount of earned income credit is

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the contribution margin per patron

LaComedia Dinner Theatre sells tickets for dinner and a show for $40 each. What is the contribution margin per patron

  Prepare journal entries for the given transactions

During the month of February, XYZ, Inc. completed the following transactions related to its stock: February 2: Issued 3,000 shares of no-par common stock.

  Rooters cleaning services provided data concerning the

rooters cleaning services provided data concerning the costs incurred to clean hotel rooms for which hotel customers

  Austin company uses the dollar value lifo inventory method

The Austin Company uses the dollar-value LIFO inventory method with internally developed price indexes.

  Is a building owned byadvance ltd

Is A building owned byAdvance Ltd and currently under construction. Upon completion, the company plans to rent it to another party.

  How much of the joint cost will be assigned to product

Product A can be sold for $100 per unit. Product B can be sold for $120 per unit. How much of the joint cost will be assigned to Product A

  Identify one manual control and one it application control

Identify one manual control and one IT application control associated with the receipt of goods from suppliers and explain the objective of each control

  Analyze the balance sheet and income statement of company

Analyze the balance sheet and income statement of the company that you have selected, and outline your method for evidence collection

  What was the amount of gift cards redeemed by customers

Uneamed Revenue, which represents the company's oblgation to honor gift cards previously Issued to customers, totaled $7,000 at the beginning of the year.

  How much goodwill did amerex purchase in its acquisition

Suppose AmerEx pays $72 million to buy Logan Overnight express. How much goodwill did AmerEx purchase in its acquisition of Logan

  Difference between a branch and a department

What is the difference between a branch and a department ? whatare the essentials of branch accounts?

  Each unit requires four pounds of raw material that costs

Each unit requires four pounds of raw material that costs $3.00 per pound. Management desires to end each quarter with a raw materials inventory equal to 15% of the following quarter’s production needs.

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