Question 17 Use the following scenario for Blanks#1-Blanks #6 Company YYZ is determining whether a piece of equipment is impaired. The equipment has a cost of $900,000 and depreciation that had been taken to December 31st, 2020 of $400,000. On December 31st, 2020, management projected that the undiscounted future cash flows of this equipment was $300,000, the discounted cash flows to be $270,000, the Fair Value to be $280,000 and the related selling costs to sell to be $20,000. The company intends to use this equipment in the future and follows IFRS. Note: provide all of your answers without dollar signs, commas or periods. Example: 68000 Blank #1: On December 31st, 2020, what is the carrying value of the equipment? Blank #2: On December 31st, 2020, what would the recoverable amount be related to the equipment? Blank #3: On December 31st, 2020, is the equipment impaired? Type yes if the equipment is impaired and type no if the equipment is not impaired. Blank #4: What is the amount of the impairment? If there is no impairment type 0. Blank #5: If instead, the company followed ASPE, would this equipment be impaired? Type yes if the equipment is impaired and type no if the equipment is not impaired. Blank #6: What is the amount of the impairment? If there is no impairment type 0.
Question 17 Use the following scenario for Blanks#1-Blanks #6 Company YYZ is determining whether a piece of equipment is impaired. The equipment has a cost of $900,000 and depreciation that had been taken to December 31st, 2020 of $400,000. On December 31st, 2020, management projected that the undiscounted future cash flows of this equipment was $300,000, the discounted cash flows to be $270,000, the Fair Value to be $280,000 and the related selling costs to sell to be $20,000. The company intends to use this equipment in the future and follows IFRS. Note: provide all of your answers without dollar signs, commas or periods. Example: 68000 Blank #1: On December 31st, 2020, what is the carrying value of the equipment? Blank #2: On December 31st, 2020, what would the recoverable amount be related to the equipment? Blank #3: On December 31st, 2020, is the equipment impaired? Type yes if the equipment is impaired and type no if the equipment is not impaired. Blank #4: What is the amount of the impairment? If there is no impairment type 0. Blank #5: If instead, the company followed ASPE, would this equipment be impaired? Type yes if the equipment is impaired and type no if the equipment is not impaired. Blank #6: What is the amount of the impairment? If there is no impairment type 0.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 17
Use the following scenario for Blanks#1-Blanks #6
Company YYZ is determining whether a piece of equipment is impaired. The equipment has a cost of
$900,000 and depreciation that had been taken to December 31st, 2020 of $400,000. On December 31st,
2020, management projected that the undiscounted future cash flows of this equipment was $300,000, the
discounted cash flows to be $270,000, the Fair Value to be $280,000 and the related selling costs to sell to
be $20,000. The company intends to use this equipment in the future and follows IFRS.
Note: provide all of your answers without dollar signs, commas or periods. Example: 68000
Blank #1: On December 31st, 2020, what is the carrying value of the equipment?
Blank #2: On December 31st, 2020, what would the recoverable amount be related to the equipment?
Blank #3: On December 31st, 2020, is the equipment impaired? Type yes if the equipment is impaired and
type no if the equipment is not impaired.
Blank #4: What is the amount of the impairment? If there is no impairment type 0.
Blank #5: If instead, the company followed ASPE, would this equipment be impaired? Type yes if the
equipment is impaired and type no if the equipment is not impaired.
Blank #6: What is the amount of the impairment? If there is no impairment type 0.
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