Reference no: EM132619191
Hydrangea Metals is a mining company that had been renting out an old sluice box to other small mining operations in the area. However, in 2020, the equipment started to have significant down time due to mechanical break downs.
The following related to the equipment at December 31, 2020:
Cost: $20,000
Accumulated depreciation 15,000
Expected future net cash flows (undiscounted) 4,000
Expected future net cash flows (discounted, value in use) 3,170
Fair value 2,400
Costs to sell (costs of disposal) 0
Assume that Hydrangea will continue to use this asset in the future. As at Dec. 31, 2020, the equipment has a remaining useful life of 4 years. Hydrangea uses straight line depreciation.
Question 1: Assuming the company follows ASPE and uses the cost recovery impairment model, prepare the journal entries for impairment if any, on Dec. 31, 2020. If no entry is required, explain why
|
Prepare the journal entries to account for lease transaction
: Prepare the journal entries to account for the lease transaction in the books of the lessee, Deliveries Ltd, at 1 July 2019 and 30 June 2020
|
|
How laws can make or break innovation in business
: Your initial post in this discussion must be informed by the required material for this discussion. The required material for this discussion will introduce.
|
|
Which is considered nonpassive income
: Which is considered nonpassive income? Income from a trade or business in which the taxpayer does not materially participate.
|
|
Prepare all journal entries required for petal patent
: Prepare all journal entries required for Petal's patent for the year ended December 31, 2020. Petal Powerwash is a company that does home maintenance services.
|
|
Prepare the journal entries for impairment on dec
: ASPE and uses the cost recovery impairment model, prepare the journal entries for impairment if any, on Dec. 31, 2020. If no entry is required, explain why
|
|
Journal entries required for petal trademark for the year
: Petal Powerwash is a company that does home maintenance services. Journal entries required for Petal's trademark for the year ended December 31, 2020.
|
|
Calculate direct material quantity variance for September
: The variable overhead spending variance was $7,497 favorable. Calculate the direct material quantity variance for September
|
|
Construct a thesis statement that articulates your position
: Use the Thesis Generator in the Ashford Writing Center to construct a thesis statement that articulates your position on the question as you have defined it.
|
|
Entry to recognize receipt of the first interest payment
: Rounding values to the nearest dollar (if necessary), entry to recognize receipt of the first interest payment on December 31, 2019
|