The information that follows relates to equipment owned by Gaurav Limited at December 31, 2014: Cost ............................ $9,000,000 Accumulated depreciation to date ............... 1,000,000 Expected future net cash flows (undiscounted) ........... 7,000,000 Expected future net cash flows (discounted, value in use) ..... 6,350,000 Fair value ........................ 6,200,000 Costs to sell (costs of disposal) ................. 50,000 Assume that Gaurav will continue to use this asset in the future. As at December 3I, 20I4, the equipment has a remaining useful life of four years. Gaurav uses the straight-line method of depreciation. Instructions (a) Assume that Gaurav is a private company that follows A5PE. 1. Prepare the journal entry at December 31, 2014, to record asset impairment, if any. 2. Prepare the journal entry to record depreciation expense for 2015. 3. The equipment s fair value at December 31, 2015, is $6.5 million. Prepare the journal entry, if any, to record the increase in fair value. (b) Repeat the requirements in (a) above assuming that Gaurav is a public company that follows IFR5. (c) Referring to the qualitative characteristics identified in the conceprual framework for financial reporting (discussed in Chapter 2), discuss the differences between the cost recovery impairment model and the rational entity impairment model.
The Koski Company has established standards as follows: Direct material: …. 3 lbs. @ $4/lb. = $12 per unit Direct labor: …… 2 hrs. @ $8/hr. = $16 per unit Actual produ...Apr 01 2020
Select a small business with which you are familiar. Imagine that you have been called into that business to provide a consultation on training. Create a comprehensive tr...Feb 04 2020
Maintaining the organization's financial records is a central purpose of which main business function?A) Manufacturing and accountingB) Finance and accountingC) Sales and...Aug 22 2020
You are required to collect a portfolio of evidence from the world around you that represents marketing objectives, strategies and tactics. You must seek current informat...Jul 27 2020
I need a report on this article and these are some questions that are related to this article that can be answer. You need criticize the article. I have provided what the...Nov 23 2019
What I a current event in marketing that is related to one or more of the topics below- price and brand image, qualitative and quantitative, markup prices(retail industry...Aug 27 2020
Judge projects with respect to their contribution to total firm risk (a firm-portfolio approach).Nov 27 2019
What is the difference between a bond’s clean price and its dirty price, and what does the saying “buy clean, pay dirty” mean? What is the difference between a bond s ...May 22 2020
Examine and compare one of the following product sets. Base your comparison on such factors as features, costs, convenience, ease of use, and value. a. GPS versus maps. b...Jun 14 2020
On January 1, a company issued a $500,000, 10%, 8-year bond payable, and received proceeds of $473,845. Interest is payable each June 30 and December 31. The company uses...Mar 20 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.