Reference no: EM133133435
Question - Spring Chicken Corporation is a public company that manufactures farm machinery and equipment, such as tractors, combines, and wagons. Spring Chicken uses the revaluation model per IAS 16, and records asset revaluations using the elimination method. (This means the balance in the accumulated depreciation account is eliminated against the asset account just prior to revaluation of the asset to fair value.) A piece of manufacturing equipment included in the property, plant, and equipment section on Spring Chicken 's statement of financial position was purchased on December 31, 2019, for a cost of $100,000. The equipment was expected to have a remaining useful life of five years, with benefits being received evenly over the five years. Residual value of the equipment was estimated to be $10,000. Consider the following situation:
Situation: At December 31, 2020, a formal revaluation is performed and the independent appraisers assess the equipment's fair value to be $89,000. During the revaluation process, it is determined that the remaining useful life of the equipment is four years, with a residual value of $11,000.
At December 31, 2021, no formal revaluation is performed, as management determines that the carrying amount of the property, plant, and equipment is not materially different from its fair value. The equipment is sold on March 31, 2022, for $62,000.
Required - Prepare any journal entries required for the situation described above for:
1. The fiscal year ended December 31, 2020;
2. The fiscal year ended December 31, 2021;
3. The disposal of the equipment on March 31, 2022.
|
How much is the proceeds from the sale of non-cash
: On January 31, 2022, partner AA received P10,000,000. How much is the proceeds from the sale of non-cash assets in January 2022
|
|
Determine for December the amount of Earnings per Share
: The Common Stock account for Baltimore Corporation on January 1, 2020 was $70,000. Determine for December the amount of Earnings per Share
|
|
Who is your target audience
: Who is your target audience? What are their tastes and interests? How can you translate those qualities into a look for your brand?
|
|
What is the firm eva
: Barton Industries has operating income for the year of $3,200,000 and a 37% tax rate. Its total invested capital is $20,000,000. What is the firm EVA
|
|
Prepare any journal entries required for the situation
: Prepare any journal entries required for the situation described above for: 3. The disposal of the equipment on March 31, 2022
|
|
Difference between cabin altitude and cruise altitude
: Difference between cabin altitude and cruise altitude
|
|
Compute the depreciation schedule
: A machine costs P250,000 and has an anticipated P50,000 resale value at the end of its five- year useful life. Compute the depreciation schedule
|
|
Mission and vision to create business description
: You apply the concepts of mission and vision to create your Business Description, Vision Statement, Mission Statement, and Personal Motivation.
|
|
Building a bridge to the 18th century
: In chapter eight, Democracy, Postman argues that democracy is also a narrative, and the meaning has changed over time. Generally speaking, there is agreement to
|