Determine the recoverable amount of the land

Assignment Help Financial Accounting
Reference no: EM132958325

At 30 June 2020, an entity holds a block of land from which it generates revenue by leasing it to agricultural enterprises. The land has a carrying amount of $2.5 million. An independent market appraisal has valued the land at $2.36 million but costs to dispose of the land are estimated at $100 000. The value in use of land is determined to be $2.33 million.

Problem 1. Determine the recoverable amount of the land.

Reference no: EM132958325

Questions Cloud

Calculate after-tax cash flow at disposal : Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $4,737. Calculate After-Tax Cash Flow at disposal
Calculate the broker commission : Calculate the broker's commission. You must decide which amounts are credits or debits for the seller or buyer, prorate certain expenses between the two parties
Assess whether the machine is impaired : The rate of return expected by the market, If necessary, provide the appropriate journal entry to recognise any impairment loss.
What is the principal of the note : If the amount of the total interest on the note is equal to $900., then what is the principal of the note? (Use 360 days for calculation)
Determine the recoverable amount of the land : Determine the recoverable amount of the land. At 30 June 2020, an entity holds a block of land from which it generates revenue by leasing it to agricultural.
Compute the cash payback period : Linkin Corporation is considering purchasing a new delivery truck. Compute the cash payback period and net present value of the proposed investment
Prepare general journal entries for the transactions : Prepare general journal entries for transactions of a business called Pose for Pics in 2016: Received Rs. 2,000 cash in photography fees earned previously
What is their eps growth rate for firm a & b : The operating leverage of firm A & B reported to be same at 2.5. If the target sales growth rate is 40% for both the firms, what is their EPS growth rate
What is the carrying value of the transportation equipment : As a result of the change in the estimated useful life of the asset, what is the carrying value of the transportation equipment as of December 31, 2010

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much interest have paid in the second year

If you were asked to make monthly payments, instead of annual payments, with the same financing rate, how much will be your monthly payment be?

  What are the operating cash flows in years

Johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $20,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 3 years for $5,000. What are the operating cas..

  Find What is the projects IRR

A project has an initial cost of $55,000, expected net cash inflows of $11,000 per year for 10 years, and a cost of capital of 9%. What is the project's IRR?

  Direct labor cost

According to the standards, what direct labor cost should have been incurred to prepare 4,000 meals? How much does this differ from the actual direct labor cost?

  What is the value of jorge account after eighteen months

Checking account and placed into a savings account earning 6% interest compounded monthly. What is the value (in $) of Jorge's account after 18 months?

  Kennedy manufacturing company

Kennedy Manufacturing Company reported the following year-end information: beginning work in process inventory, $270,000; cost of goods manufactured, $1,074,000; beginning finished goods inventory, $380,000; ending work in process inventory, $330,000..

  How much will need to have the day retire in order to fund

A retirement age of 62, How much they will need to have the day they retire in order to fund their retirement with no additional contributions

  What the entry to record the return would include

The invoice included HST at 13% and payment terms of 2/10, n/30. five necklaces were returned prior to payment. the entry to record the return would include

  The company uses the straight-line depreciation method

The unadjusted trial balance as of December 31, 2013 for the Bagel Company appears below. December 31 is the company’s fiscal year-end. Enter the account balances into T-accounts. From the trial balance and information given, prepare adjusting entrie..

  What the expected value of an investment is

What the expected value of an investment is? the expected annual average return over the life of the project./ the risk that an investment might face

  The coates co expects to sale 8000 units in june

The Coates Co. expects to sale 8,000 units in June, 12,000 in July, 10,000 in August, and 9,000 in September. All sales are for $35 per unit. 30% of the sales are cash sales. Of the remaining 70% (the credit sales), Coates collects 37% of them in the..

  How client x should account for employee stock option plan

In 175 words Point out all of the cons in describe how Client X should account for its employee stock option plan under existing GAAP.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd