Reference no: EM132359735
Question :
Wendy Inc is trying to determine whether their building is impaired. On December 31#, 2017 the building account had a balance of $900,000 and the related accumulated depreciation account had a balance of $400,000 (note: assume that the correct depreciation for 2017 had already been recorded). On December 31, 2017 the undiscounted cash flows from the building was $300,000 and the fair value was $230,000. The company intends to use this building in the future. Assume that Wendy Inc applies ASPE.
(a) Prepare the journal entry to record the impairment at December 31st, 2017 (if there is no impairment, please indicate why there is no impairment).
(b) Where should the gain or loss on the impairment (if any) be reported on the income statement?
(c) At December 31st, the building's fair value increased to $260,000. Prepare the journal entry, if any, to record this increase in fair value.
(d) Assume instead that as at December 31st, 2017, the building was expected to have undiscounted cash flows of $510,000 and that it's fair value was estimated to be $450,000. Prepare the journal entry (if any) to record the impairment at December 31 st, 2017?
(e) If instead the company followed IFRS, what additional information would you require to test the building for impairment?
|
Explain the problem or issue
: Explain the problem or issue, presenting perspectives on the various sides of the conflict. If possible, include differing opinions that have been given
|
|
Provide a system vison for each subsystem
: Holmes Institute, Australia - HS2011 Systems Analysis and Design Assignment, Your task is to provide a system vison and requirement models for each subsystem
|
|
What stereotypes did people comment on
: During this module, you were to do an experiment using your own social media (Module 03 Activity). Looking back at your social media experiment from the week.
|
|
Good working relationship with groups
: What will you do to ensure that you have a good working relationship with each of these groups? How will they fit into the evaluation of your project?
|
|
Where should the gain or loss on the impairment
: At December 31st, the building's fair value increased to $260,000. Prepare the journal entry, if any, to record this increase in fair value.
|
|
Effective strategy and execution and innovation
: The preamble says that "effective strategy execution is vital to creating sustainable competitive advantage" - There are three primary areas
|
|
Analyze the corporate-level strategies for the corporation
: Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term.
|
|
Why are all these areas critical to strategy execution
: First question is "Why are all these areas critical to strategy execution?
|
|
Prepare the journal entries to account for the investment
: Prepare the journal entries to account for the investment in Casino Ltd. On December 315, the Casino Shares had a fair value of $60.50 per share.
|