Pearl Landscaping Limited has determined that its lawn maintenal as follows: Land Building Equipment Vehicles $39,000 68,000 45,000 33,000 $185,000
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- ABC Co. has a division that is considered to be a cash-generating unit for purposes of IAS 36, impairment of assets. The recoverable amount of this cash-generating unit is $130 000 at 31 December 2014. The carrying amount of the cash-generating unit is $181 000 at 31 December 2014, constituted by the following individual carrying amounts as at this date: Goodwill (purchased goodwill): 20 000 Equipment (measured under the cost model): 60 000 |Investment property (measured under the cost 81 000 model: Inventory 20 000 The recoverable amounts at 31 December 2014 for the goodwill and investment property could not be estimated on an individual basis, but the recoverable amount for equipment was estimated to be $40 000. In accordance with IAS 2 the net realizable value of the inventory was $15 000. Required: Calculate whether the cash-generating unit is impaired and compute the impairment loss if there's any.Doc Company has determined that its electronics division is a cash generating unit. The entity calculated the value in use of the division to be P8,000,000. The assets of the cash generating unit at carrying amount are as follows: Building Equipment Inventory 5,000,000 3,000,000 2,000,000 Doc Company has also determined that the fair value less cost to sell of the building is P4,500,000. What is the impairment loss to be allocated to the equipment?Po34. Coronado Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRSThe carrying amounts of the division's assets at December 31, 2023, are as follows : Land $27,000 Building56,000 Equipment36,000 Vehicles19,000 $138,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $124,200, fair value less costs to sell is $93,000 , and undiscounted future net cash flows are $162,000.
- Ermon Company determined that its electronics division is a cash generating unit. The entity calculated the value in use of the division at P8,000,000. The carrying amounts of the assets are: Building P5,000,000; Equipment - P3,000,000; and Inventory - P2,000,000. The entity also determined that the fair value less cost of disposal of the building is P4,500,000. What is the impairment loss to be allocated to the equipment? A. 1,000,000 B. 900,000 C. 600,000 D. 400,000Silver Company operates a production line which is treated as a cash generating unit for impairment review purposes. At year-end, the carrying amounts of the noncurrent assets are as follows: 1,100,000 Goodwill Machinery 2,200,000 The value in use of the production line is estimated at P2,700,000 at this time. 7. What is the revised carrying amount of goodwill after recognition of impairment? a. 1,100,000 b. 900,000 C. d. 500,000 800,000 8. What is the revised carrying amount of machinery after recognition of impairment? a. 2,200,000 b. 1,800,000 c. 1,600,000 d. 1,900,000Monroe Company is engaged in a number of research and development projects. Its accounting policy with regards to research and development is to capitalize expenditure as far as allowed by PAS 38 Intangible Assets. At June 30, 2024, the following balances existed in the company's accounting records: Project A : Development completed June 30, 2022. Total expenditure P200.000. Being amortized over five years on the straight-line basis in accordance with the company's standard policy. Balance at June 30, 2024: P120,000. Project B: A development project commenced July 1, 2019. Total expenditures in the years ended June 30, 2023 and June 30, 2024 totaled P175,000. During the year ended June 30, 2025, it became clear that a competitor had launched a superior product and the project was abandoned. Further development expenditure in the year ended June 30, 2025 amounted to P55,000. Project C: Development commenced October 1, 2020. Expenditures per year: Year ended June 30, 2025,…
- Berrie Electric Inc. has the following amounts included in its general ledger at December 31, 2023: Organization costs$ 34,000 Purchased trademarks17,500 Development phase activities (meet all six development phase criteria)29,000 Deposits with advertising agency for ads to promote goodwill of company8,000 Excess of cost over fair value of identifiable net assets of acquired subsidiary81,000 Cost of equipment acquired for research and development projects; the equipment has an alternative future use125,000 Costs of researching a secret formula for a product that is expected to be marketed for at least 20 years75,000 Payment for a favourable lease; lease term of 10 years15,000 Instructions Based on the information provided, calculate the total amount for Berrie to report as intangible assets on its statement of financial position at December 31, 2023. Assume Berrie uses IFRS to prepare its financial statements.Carla Vista Electric Inc. has the following amounts included in its general ledger at December 31, 2023: Organization costs $34,600 Purchased trademarks 18,400 Development phase activities (meet all six development phase criteria) 30,300 Deposits with advertising agency for ads to promote goodwill of company 8,500 Excess of cost over fair value of identifiable net assets of acquired subsidiary 80,600 Cost of equipment acquired for research and development projects; the equipment has an alternative future use 125,600 Costs of researching a secret formula for a product that is expected to be marketed for at least 20 years 75,000 Payment for a favourable lease; lease term of 10 years 14,400 (a) Based on the information provided, calculate the total amount for Carla Vista to report as intangible assets on its statement of financial position at December 31, 2023. Assume Carla Vista uses IFRS to prepare its financial statements.Heart Company incurred costs in 2022 as follows:Equipment acquired for use in various research and development projects - P900,000Depreciation on the equipment above - 210,000Materials used in R&D - 300,000Compensation costs of personnel in R&D - 400,000Outside consulting fees for R& D work - 200,000 Indirect costs appropriately allocated to R&D - 260,000What is the total amount of research and development that should be reported in Heart Company's 2022 statement of comprehensive income?The answer must be P1,390,000
- The following information are made available by Wind Farms of its biological assets at December 31, 2022: Price of the assets in an active market, P5,100,000 Estimated dealer's commission, P30,000 Estimated finance cost and income tax, P20,000 Transport and other costs expected to be incurred to bring the assets to the market, P60,000 At what amount should the biological assets be recognized on December 31, 2022?he following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30 Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? Group of answer choices 1,512,000 1,856,320 2,288,000 1,992,320The following information relates to Absolute Company for the year 2020: Determine the accounts and amounts taken to profit or loss relating to the investment property. Land Held as Investment Property (at cost) 5,000,000 Fair value at January 1, 2020 6,000,000 Fair value at December 31, 2020 6,800,000 Estimated disposal cost 300,000 Building Held as Investment Property Construction was completed at January 1, 2020 at a total cost of 20,000,000 Estimated useful life with no residual value 40 years Fair value at January 1, 2020 19,000,000 Fair value at December 31, 2020 20,000,000 Estimated disposal cost 500,000 Rent revenue recognized during 2020 3,000,000 Compensation paid to personnel for administrative and security 200,000 Real property taxes applicable to 2020 120,000 Costs of maintenance paid to an outsourced company 340,000