Prepare appropriate journal entries for the impairment loss

Assignment Help Accounting Basics
Reference no: EM132158616

Question -

(a) How should be the reversal of an impairment loss be accounted for?

(b) Azalea Ltd has determined that its China division is a cash-generating unit. The carrying amounts of the assets at 30 June 2015 are as follows:

Factory

$210,000

Land

$150,000

Equipment

$120,000

Machinery

$60,000

Azalea Ltd calculated the Value in Use of the division to be $510,000 and Fair Values less Cost to Sell (net selling price) of $480,000.

Required - Prepare the appropriate journal entries for the impairment loss, assuming that the fair values less cost to sell of the land are:

a) $140,000

b) $145,000

Reference no: EM132158616

Questions Cloud

Could you please provide reference link if possible : As I.T. administrators, how would you insure VMs are backed up and continually available?
What technologies are associated : Pick one sub-culture, what technologies are associated? How has the technologies impacted that sub-culture? What type of new technology would have the biggest.
Talked about variables for some time now : We have talked about variables for some time now. However, Chapter 6 introduces the concept of an array. What is the difference between a variable and an array?
Describe and compare the main types of spyware : 1. Describe and compare the main types of spyware.
Prepare appropriate journal entries for the impairment loss : Prepare the appropriate journal entries for the impairment loss, assuming that the fair values less cost to sell of the land are: $140,000
Evaluate the corporate-level strategy of victory motorcycle : The business level procedure which has made Victory Motorcycles so celebrated the world over is its enhancement system.
Find the primary and secondary unbalanced forces : ENMEC4060 Vibration and machine dynamics - Assessment task - Find the magnitude and angular position of the balancing weight required. Assume that the weights
How will ai change the future of work : How will AI change the future of work? Please list the issues that you are seeing as a possible downside of AI in the labor market?
Consider a variant of quicksort that pivots : Consider a variant of Quicksort that pivots on the first element, and creates a subarray with everything less than the first elements

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is generalized audit software

What is generalized audit software? What are the tasks for which an auditor would use it? What are the advantages and disadvantages of using generalized audit software?

  Which of the given costs is relevant to the decision

Department A covers one section of a large factory building. Which of the following costs is relevant to the decision to eliminate Department? A?

  Prepare a schedule computing the equity income

Miller's policy is to pay a $1 per share cash dividend every April 1. Prepare a schedule computing the equity income to be recognized by Gibson during 2007

  Naui industries manufacture flowered shirts which normally

naui industries manufacture flowered shirts which normally sell for 24 each. the current unit cost to manufacture each

  You are the cfo of diversied industries diversied has

you are the cfo of diversi?ed industries. diversi?ed has suffered through 4 or 5 tough years. this has deteriorated its

  Discuss an article on accounting

Each student is required to select an article on "accounting" published in the Wall Street Journal in 2015, 2016, or 2017.

  Provide the journal entry to admit webster

Jamarcus Webster purchased one-half of Drew Akins's interest in the Perry and Akins partnership for $25,000. Prior to the investment, land was revalued to a market value of $100,000 from a book value of $84,000.

  Review the case study of the capital budgeting

Capital budgeting, RI. Ryan Alcoa, a new associate at Jonas Partners, has compiled the following data for a potential investment for the firm.

  What will the total contribution margin per unit be

Romero Bakery has two divisions. One division makes bagels, and the other division is a restaurant that sells bagel sandwiches.

  What are the contribution margin per unit

Agler Company's Speedo calculator sells for $40. Variable costs per unit are estimated to be $28. What are the contribution margin per unit and the contribution margin ratio?

  On the day of the clinic great adventures receives cash of

on the day of the clinic great adventures receives cash of 2625 from 35 bikers. tony conducts the mountain biking

  Depreciation for annual adjustment purposes

Which extended the useful life of the truck for an additional two years beyond that originally estimated (salvage value is still estimated at $24,000). In computing depreciation for annual adjustment purposes, expense is calculated for each month ..

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