User Account

All Pages

Prepare the journal entries if any to record the impairment

Assignment Help Financial Accounting
Reference no: EM132608713

KK Corp., a mining company, owns a significant mineral deposit in a northern territory. KK prepares financial statements in accordance with IFRS. Included in the asset is a road system that was constructed to give company personnel access to the mineral deposit for maintenance and mining activity. The road system cannot be sold separately and does not generate cashflows separately from other assets. The carrying amounts of two cash-generating units of the mine at June 30, 2020, are as follows: Machinery $4,000,000 Mine in the development phase $9,500,000 The machinery's value in use has been assessed at $4,500,000 while the fair value less costs to sell is $3,800,000. With respect to the mine, the value in use is $9,000,000 while fair value less costs to sell is $9,350,000.

Question (a) How should the road system's recoverable amount be determined?

Question (b) Determine if the machinery and the mine are impaired and prepare the journal entries, if any, to record the impairment at June 30, 2020.

Reference no: EM132608713

Questions Cloud

Demonstrate the use of one accessor method : Create a new Java project called usernamePart4 in NetBeans and Create a new class called Sculpture. Create a second new class called ArtObject
Phases of incident response : Consider the phases of incident response listed below. Recovery and Repair. Debriefing and feedback.
What capital cost is assigned to the land : Manager is currently on-site facilitating the production startup. This manager is an annual salary of $85,000. What capital cost is assigned to the land?
How does model measure effect of the process change : The data in the table are from a study conducted by an insurance company to determine the effect of changing the process by which insurance claims are approved.
Prepare the journal entries if any to record the impairment : Determine if the machinery and the mine are impaired and prepare the journal entries, if any, to record the impairment at June 30, 2020.
Six stages of process development : Can you explain the six stages of process development and how they can apply to your daily life?
What is your r squared : What is your R squared (variance explained)? Is it sufficient to proceed? Because your company wants to lead in base pay by 3%, adjust the predicted pay rates.
Find what is net profit for the year : DEF Ltd has no opening inventory. Operating expenses paid in cash are $35,000 and it owes wages of $15,000 at year end. What is net profit for the year?
Describe operating system hardening : Supplying citations to support any information that you provide. Describe operating system hardening. Describe system restoration methods and procedures

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the carrying amount of the plant on november

On January 01, 2020, Whitney Company borrowed P6,000,000, What is the carrying amount of the plant on November 30, 2020?

  Prepare a table with the column headings

Prepare a table with the column headings. Use the table to show how to distribute net income of $450,000 for the calendar year under each of the alternative plans being considered(Round answers to the nearest whole dollar).

  What will the balance in the share capital

The firm just declared a 10% stock dividend . what will the balance in the share capital -- ordinary shares account be after the 10% stock dividend ?

  The stockholders equity section

The December 31, 2014, balance sheet of Giorgio Inc., reported total assets of $1,050,000 and total liabilities of $680,000. The following information relates to the year 2015: Madden Inc. issued an additional 5,000 shares of common stock at $25 per ..

  Recording sales gross and net

(Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchant- dice having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. Prepare journal entries on the Arnold Company books to record all the even..

  Income statement and computation of earnings per share

Preparation of an income statement and computation of earnings per share and prepare an income statement for the year 2007 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of t..

  Compute the number of preferred shares that were issued

Compute the number of preferred shares that were issued during 20X6. By what amount did the company's paid-in capital increase during 20X6?

  Compute the overall overstatement or understatement

Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments. Journalize the adjusting entries.

  How much money must the firm receive from selling the land

Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money

  Identify the companys value chain

Identify a public manufacturing company in the USA that produces a tangible products. Identify the company’s value chain (first and second level) Be specific in your description. What benchmarks does the company use to measure its progress? If none c..

  What methods can used by fed to influence interest rates

What methods can be used by the FED to influence interest rates? Are these methods effective? Use examples where appropriate.

  What is Halis expected stock price five years from now

Grow at a constant rate, g, in the future, and if the required rate of return is expected to remain at 12%, what is Hali's expected stock price 5 years from now

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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