Based on the preceding information, compute the following: 1. What is the revaluation surplus balance at December 31, 201C, before recognition of the impairment loss? 2. What is the amount of impairment loss to be reported on Love's income statement for the year 201C?
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- Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on April 1, Year 1. Calculate the depreciation for Year 1 and Year 2 using the double-declining-balance method. Round to the nearest dollar.Kerr Company purchased a machine for P115,000 on January1, year 1, the company’s first day of operations. At the end of the year, the current cost of the machine was P125,000. The machine has no salvage value, a five-year life, and is depreciated by the straight-line method. For the year ended December 31,year 1, the amount of the current cost depreciation expense which would appear in supplementary current cost financial statements is P14,000 P23,000 P24,000 P25,000Riley acquired a non-current asset on 1 October 20W9 (ie 10 years before 20X9) at a cost of $100,000 which had a useful life of ten years and a nil residual value. The asset had been correctly depreciated up to 30 September 20X4. At that date the asset was damaged and an impairment review was performed. On 30 September 20X4, the fair value of the asset less costs of disposal was $30,000 and the expected future cash flows were $8,500 per annum for the next five years. The current cost of capital is 10% and a five-year annuity of $1 per annum at 10% would have a present value of $3.79. What amount would be charged to profit or loss for the impairment of this asset for the year ended 30 September 20X4?
- Alayna Ltd bought a machine on 1 January 20X2 for GHS 70,000. The useful life of this machine was assessed as 10 years and it was depreciated on a straight-line basis. On 31 December 20X3, the machine was revalued to a fair value of GHS 80,000 with no change to its remaining useful life. On 31 December 20X6, the machine was identified as impaired and revalued to GHS 20,000. Alayna Ltd does not make a transfer between the revaluation surplus and retained earnings each year as a result of the revaluation. According to IAS 36 Impairment of Assets, what amount will be included in the income statement of Alayna Ltd for the year ended 31 December 20X6 in respect of this impairment loss?Beemo Company purchased an equipment on January 1, 2018 for P150,000. The equipment is being depreciated using the straight-line method over its projected useful life of 10 years. on December 31, 2019, it was determined that the asset’s recoverable amount was only P96,000. Assume that this was properly computed and that recognition of the impairment was warranted. On December 31, 2020, the asset’s recoverable amount was determined to be P111,000 and management believes that the impairment loss previously recognized should be reversed. How much impairment loss should be recognized on December 31, 2019? What is the asset’s carrying amount on December 31, 2020? What would have been the asset’s carrying amount at December 31, 2020, had the impairment not been recognize in 2018? How much impairment recovery should be reported in 2020 income statement?mark Inc. purchased a machinery on January 1, 2020, at a cost of P1,250,000. It is being depreciated using the straight-line method over its projected useful life of 8 years. On December 31, 2021, the asset’s fair value was P1,125,000. Accordingly, an entry was made on that date to recognize the revaluation surplus. Revaluation is recorded maintaining the proportionate relationship between the asset account and accumulated depreciation. It is the company policy to transfer a portion of revaluation surplus to retained earnings every period. What is the amount of revaluation surplus reported in equity on December 31, 2022?
- Cake, Inc. purchased a machinery on January 1, 2020, at a cost of P1,250,000. It is being depreciated using the straight-line method over its projected useful life of 8 years. On December 31, 2021, the asset's fair value was P1,125,000. Accordingly, an entry was made on that date to recognize the revaluation surplus. Revaluation is recorded maintaining the proportionate relationship between the asset account and accumulated depreciation. It is the company policy to transfer a portion of revaluation surplus to retained earnings every period. What is the amount of revaluation surplus reported in equity on December 31, 2022?*Alayna Ltd bought a machine on 1 January 20X2 for $70,000. The useful life of this machine was assessed as 10 years and it was depreciated on a straight-line basis. On 31 December 20X3 the machine was revalued to a fair value of $80,000 with no change to its remaining useful life. On 31 December 20X6 the machine was identified as impaired and revalued to $20,000. Alayna does not make a transfer between the revaluation surplus and retained earnings each year as a result of the revaluation. Required: According to HKAS 36 ‘Impairment of Assets’ what amount will be included in the statement of profit or loss of Alayna for the year ended 31 December 20X6 in respect of this impairment loss? A. $nil B. $6,000 C. $30,000 D. $24,000On January 1, 2016, Makakaya Co. acquired machinery with a cost of P2,200,000 with an estimated useful life of 10 years and an estimated salvage value of P200,000. On January 1, 2017, the machinery has a recoverable amount (fair value) of P1,280,000 with an estimated useful residual value of P155,000. On January 1, 2019, based on objective evidence, the machinery was found to have been impaired. The machinery now has a recoverable amount (fair value) of P600,000 with an estimated residual value of P40,000. 2016 2017 CA<RA 2019 2,200,000 1,280,000 600,000 Assuming the company is using a revaluation model, answer the following: How much is the depreciation expense in 2016? How much is the revaluation surplus on January 1, 2017? How much is the depreciation expense in 2017? How much is the impairment loss in 2019? How much is the depreciation expense in 2019?
- On December 31, 2021, Alexis Company has an item of machinery with a cost of P4,500,000 and an accumulated depreciation of P1,800,000. On this date, the machinery is found to be impaired due to obsolescence and a major physical damage. At the date of its acquisition, this machinery has an estimated useful life of ten years and was depreciated using the straight line basis.The entity made an assessment and test for recoverability of the asset and determined that the machinery’s fair value is P2,500,000 and estimated disposal cost is P250,000. The entity expects net future undiscounted cash flows related to the continued use and eventual disposal of the machinery of P2,600,000. The net future discounted cash flows related to the continued use and eventual disposal of the machinery using a discount rate of 10% is P2,180,000. How much is the depreciation expense of this machinery for the year ended December 31, 2022?On January 1, 2011, FALLACIOUS MISLEADING Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years. On January 1, 2016, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life. On January 1, 2019, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years. The building is measured under the revaluation model. How much of the impairment reversal is recognized in profit or loss? a. 160,000 b. 1,760,000 c. 1,600,000 d. 0 How much of the impairment reversal is recognized in equity? a. 160,000 b. 1,760,000 c. 1,600,000 d. 0On January1, 2013, FUSS Company acquired a bakery equipment at a cost of $650,000. The equipment is being depreciated using straight-line method over its estimated useful life of 10 years. On December 31,2016, a determination was made that the asset's recoverable amount was only $240,000. On December 31,2018, the asset's recoverable amount was determined to be $270,000 and the management believes that the impairment previously recognized should be reversed. How much gain from recovery of impairment should be reported in 2018?