How much impairment loss is to be recorded by brave

Assignment Help Financial Accounting
Reference no: EM133179766

Question - Brave Corporation acquired equipment on January 3, 2018 at a cost of P100,000. The estimated useful life of the equipment is 10 years with estimated residual value of P10,000. The company uses straight-line depreciation, computed to the nearest month. On October 1, 2021, the equipment was made "held for sale". It's fair value on this date was P50,000 and the cost to sell was estimated at P2,000. In January 2022, the asset was sold for P50,000 and disposal cost incurred amounted to P3,000. (Brave Corporation uses Fair value model)

Required -

1. At what amount should the non-current assets held for sale be recorded on Oct. 1, 2021?

2. How much impairment loss is to be recorded by Brave relating to the non-current assets held for sale?

3. How much gain(loss) is to be reported by Frozen on the disposal of the non-current assets held for sale?

Reference no: EM133179766

Questions Cloud

What steps would you take to manage underperformance : How can you assure that your work allocations are cost effective and Who are human resource experts? Where would you normally find them in organisations
Identify the performance obligations in the contract : For XYZ, the total cost (or transaction price) of the contract is $1,000,000. Identify the performance obligations in the contract
Create international internship program : The Chairwoman of the Board of Directors has selected you to lead the effort to create an international internship program for your organization.
How much would she have had received at maturity : Crystal invested $215 for 13 months in a bank and received a maturity amount of $240.25. How much would she have had received at maturity
How much impairment loss is to be recorded by brave : Brave Corporation acquired equipment on January 3, 2018 at a cost of P100,000. How much impairment loss is to be recorded by Brave
What is the materials price variance for sunland for june : The price per gallon was $1.20 and the company used 7300 gallons of the dye during the month. What is the materials price variance for Sunland for June
Prepare the journal entries to record the transactions : On June 30, 2020, Larkspur Company issued $4,360,000 face value of 13%, 20-year bonds at $4,688,000, Prepare the journal entries to record the transactions
Compute the pension expense for the year : Cheyenne Company provides the following information about its defined benefit pension plan for the year 2020. Compute the pension expense for the year
BSBMGT502 Manage People Performance Assignment : BSBMGT502 Manage People Performance Assignment Help and Solution - Why is staff consultation necessary in determining the allocation of work

Reviews

Write a Review

Financial Accounting Questions & Answers

  Air scrubbers required by the epa for life of the facility

A company must select between two air scrubbers required by the EPA for the life of the facility. Scrubber A has an initial cost of dollar 150,000 also costs dollar 12,000 per year to operate, and has a salvage value of dollar 15,000. Scrubber B has ..

  How do prepare a variance report and balanced scorecard

How do prepare a variance report and balanced scorecard for the a company, comparative against the competitor company and industry averages for liquidity

  Identify three sectors within the uk economy

Identify three sectors within the UK economy in which a business can operate. What are the differences between the three sectors?

  Prepare a system flowchart of the company payroll process

he processing run results in a payroll register, employee paychecks and earning statements, and an error summary report, all on magnetic tape. Prepare a system flowchart of the company’s payroll process.

  What is the current per share value at a required return

Galloway, Inc. just paid a dividend of $3 per share and has announced that it will increase its dividend by $1 per share for each of the next 4 years

  Was there a violation of ethical standards here explain

Holmes Corporation manufactures electronic components for use in many consumer products. Was there a violation of ethical standards here

  Estimate the fixed and variable components of transportation

Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components.

  Compute what interest rate is he being charged

The sales revenue, the interest and the principal will be repaid on the due date. How much should be repaid by JEL Limited on the due date?

  What are the journal entries for year

What are the journal entries for 10/20/Year 7, if any? What are the journal entries for 10/31/Year 7, if any? What are the journal entries for 1/15/Year 8

  Prepare the journal entry that Faulkner will record

For an asset that cost $18,100 with an estimated residual value of $1,100 and an estimated useful life of 10 years, Prepare the journal entry

  What is the net effect in the retained earnings

What is the Net effect in the Retained Earnings 2015 and Net Effect in the working Capital 2015 and Net effect in 2014 net income

  Journalize the entry on december to record the payroll

Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll

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