Which statement relating to reporting period ending at dec

Assignment Help Financial Accounting
Reference no: EM132771456

Problem 1: An asset, owned by XYZ, which cost £200,000 on 1 January 2016 is being depreciated on the straight-line basis over five-year period with no residual value. XYZ adopts the cost model to value the asset. XYZ has conducted an impairment review at 31 December 2017 and estimates that the asset will generate £40,000 net cash flow per year over the rest of its useful life. The discount rate is 10%. XYZ also estimates that the asset could be sold on 31 December 2017 for £110,000. Disposal costs would be £10,000. Which of the following statement relating to the reporting period ending at 31 December 2017 is correct?

Select one:

a. None of the answer choices are correct.
b. The value in use of the asset is £100,000.
c. The recoverable amount is £99,474.
d. The carrying amount of the asset is £160,000.
e. The impairment loss is £20,000.

Reference no: EM132771456

Questions Cloud

When and how bacillus subtilis was firstly discovered : When and how bacillus subtilis was firstly discovered?
What will the eliminating entries : On June 1, 2020 A Corp sold inventory to B Corp with the cost of 50,000 and selling price of 100,000. What will the eliminating entries
What is job evaluation : What is job evaluation, how does it differ from job analysis and how is it used in establishing an equitable internal job structure?
What is the eligibility for the fnp certification : The ANCC Family Nurse Practitioner board certification examination is a competency based examination that provides a valid and reliable assessment of the.
Which statement relating to reporting period ending at dec : Disposal costs would be £10,000. Which of the following statement relating to the reporting period ending at 31 December 2017 is correct?
How much total cash is distributed to common stockholders : How much total cash is distributed to common stockholders. Assume that on December 31, 2019, The Villages Company has outstanding 9,000 shares of $25 par
What standard and isolation precautions : You have a patient with a suspected skin infection on his leg. What standard and isolation precautions do you need to follow? Why?
Weaknesses of caterpillar competitive advantages : Analyze the strengths and weaknesses of Caterpillar's competitive advantages.
Understanding of disease transmission and human evolution : How has COVID-19 changed our understanding of disease transmission and human evolution?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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