What is the impairment allocated to patent

Assignment Help Financial Accounting
Reference no: EM132943725

Question - The following information relates to Bonvey Limited on 31 December 2020.

Asset Carrying Amount

Inventory 200,000

Cash 100,000

Land 1,000,000

Vehicles 300,000

Accounts Receivable 100,000

Patent 200,000

Goodwill 100,000

These assets have a combined value in use of $1,800,000. The value in exchange was noted to be $1,500,000. Inventory was recorded at lower of cost and net realisable value. The patent had an indefinite useful life. Vehicle was depreciated at 10% per annum. Land had a value in use of $940,000 and the related value in exchange was $935,000. What is the impairment allocated to patent?

Reference no: EM132943725

Questions Cloud

How much is the total revenue from reportable segments : How much is the total revenue from reportable segments? Additional informationGross profit from internal customers is 10% lower as compared to outside customers
Three types of efficient markets : There is three types of efficient markets; study the patterns of Pakistan Stock Exchange PSX and state what type of efficient market it is and why?
Traditional trade payment and financing systems : PAD runs a fairly high-margin business given that it is positioned at the 'luxury' end of the market and commands a significant premium for its items and for th
Opinion on australian governments : The German government is closing down all their nuclear power plants and will rely solely on renewable power. Are the U.S. and France missing an opportunity to
What is the impairment allocated to patent : Land had a value in use of $940,000 and the related value in exchange was $935,000. What is the impairment allocated to patent
How much is the other comprehensive income in the statement : How much is the other comprehensive income in the statement of financial position as of the end of the 3rd quarter, September 30, 2020?
Concept of normal science : What Donalson (1996) and Burrell (1996) referred to by using the concept of Normal Science? Please explain.
How much is the salaries expense at june : Assume the pay period ends on Friday 3rd July and the financial year ends on 30th June. How much is the salaries expense at 30th June
Apply management theories based on your experiences : Produce a piece of evaluative writing (1800 words) and apply management theories based on your experiences or taken from a company of your choice

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss at least two unique situations that may encounter

Discuss at least two unique situations or transactions that you may encounter. Describe any circumstances the entity may engage in activities

  Explain briefly how this transaction affects the company

Foster Inc. purchased a truck by paying $5,000 and borrowing the remaining $25,000 required to complete the transaction. Explain briefly how this transaction affects the company's basic accounting equation?

  Compute the book value per share of common stock

The preferred stock has 557,740 shares authorized, with a par value of $100 and an annual $3.75 per share, Compute the book value per share of common stock

  Prepare an income statement for july on the accrual basis

On July 1, Montero signed a 1-year lease on a warehouse, paying $48,000. Prepare an income statement for July on the accrual basis. Ignore income taxes.

  If bonds are issued at a discount

If bonds are issued at a discount, it means that the

  List the elements of a good financial plan

Identify and discuss the three most important personal factors and the three most important economic factors that affect your financial planning decisions.

  How much rental expenses can she deduct for this year

Assume Rebecca receives $15,000 in gross rental receipts. How much rental expenses can she deduct for this year as Deduction For AGI (on Sch-E)

  Calculate the standard payback period

Calculate the standard payback period. If the cut-off year is 3 years, should FIN222 Ltd accept the new project and why

  What is the correct answer to Comey question

Comey Products has decided to acquire some new equipment having a $200,000 purchase price. What is the correct answer to Comey question

  What the disclosure of information about key sources

What the Disclosure of information about key sources of estimation uncertainty, Is either voluntary or mandatory, Depends on the industry

  How to prepare entries to sell the noncash assets

How to Prepare entries to sell the noncash assets, pay the liabilities, and distribute the remaining cash to the partners. All the noncash assets are sold

  How do the tax-exempt securities used to pay for building

Find How do the tax-exempt securities used to pay for the building compare in risk to a conventional municipal bond issued by Traverse County?

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