Question 6 yet answ Marked out of 3.00 At year-end, Generous Company has a cash generating...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/04/662aec5578543_045662aec5535571.jpg)
Transcribed Image Text:
Question 6 yet answ Marked out of 3.00 At year-end, Generous Company has a cash generating unit with the following assets and liabilities at carrying amount: Inventory P240,000 Accounts Receivable P360,000 Plant and Equipment P7,200,000 Accumulated Depreciation P3,120,000 Patent P1,020,000 Goodwill P120,000 Accounts Payable P750,000 The accounts receivables are regarded as collectible and the inventory has a fair value less cost of disposal which is equal to the carrying amount. The patent has a fair value less cost of disposal of P900,000. At year-end, the entity determined the value in use of the unit at P4,860,000. Q1) How much is the impairment loss to be recognized at year-end? Q2) How much impairment loss is allocated to Patent? Q3) What is the carrying amount of the Plant and Equipment at year-end after impairment loss had been recognized? Question 6 yet answ Marked out of 3.00 At year-end, Generous Company has a cash generating unit with the following assets and liabilities at carrying amount: Inventory P240,000 Accounts Receivable P360,000 Plant and Equipment P7,200,000 Accumulated Depreciation P3,120,000 Patent P1,020,000 Goodwill P120,000 Accounts Payable P750,000 The accounts receivables are regarded as collectible and the inventory has a fair value less cost of disposal which is equal to the carrying amount. The patent has a fair value less cost of disposal of P900,000. At year-end, the entity determined the value in use of the unit at P4,860,000. Q1) How much is the impairment loss to be recognized at year-end? Q2) How much impairment loss is allocated to Patent? Q3) What is the carrying amount of the Plant and Equipment at year-end after impairment loss had been recognized?
Expert Answer:
Answer rating: 100% (QA)
Q1 To determine the impairment loss to be recognized at yearend we compare the recoverable amount of ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
Students also viewed these finance questions
-
The era of business orientation that focus on knowing and understanding the customer so well that the product or service fits well is categorised as Marketing concept A . True B . False
-
THE COMPANY: Aylmer Industries Inc. (Aylmer) has been in business since Y4. Aylmer has two main business segments. This first segment is the construction of large-scale projects. In Y7, Aylmer had...
-
Brown Inc. has the following information available regarding their defined benefit pension plan. Prior service costs (PSC) were $60,000. Settlement (discount) rate is 6% and expected return on plan...
-
1. Create your Dream Board (all the things you want to buy or establish in the future). Specify the amount of each item. 2. Search the salary of your prospective careers 5 years from now. 3. With the...
-
You are going to use the methods discussed in this chapter to estimate the proportion of all cars in your area that are red. Stand on a busy street and count cars as they pass by. Count 100 cars and...
-
The Coca-Cola Company and PepsiCo, Inc., are fierce competitors in the beverage and snack markets. A perennial question among consumers is "Coke or Pepsi"? In this case, we will be looking at the...
-
Fill in the missing information assuming a correlation of -.10. Stocks 1.00 Portfolio Weights Expected Standard Bonds Return Deviation 14% 20% 0.80 0.60 0.40 0,20 0.00 5% 8%
-
Tropical Sun Ltd. makes suntan lotion in two stages. The lotion is rst blended in the Blending Department and then bottled and packed in the Bottling Department. The following information relates to...
-
EVATIVE CUemties by... L Education - Los An... G In 2 Hwk (Obj 1-4) uestion 20 of 20 (1 point) | Question Attempt 1 of 3 8 =9 10 <11 12 13 ulation of a country in 2010 was approximately 34 million...
-
Required information [The following information applies to the questions displayed below.) Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area...
-
6.Saskatoon Prime Food (SPF) has 4 million shares with current market value of $32 per share and no debt. SPF produces and sells canned food. SPF's experience suggests that sales can vary from 6...
-
What are the top FIVE impacts of franchising concept on US economy. Explain in details.
-
In an n-type semiconductor bar, there is an increase in electron concentration from left to right and an electric field pointing to the left. a. With a suitable sketch, indicate the directions of the...
-
What is the concept analysis of long-term care in relation to Employee Records & Mandatory H.R. Documentation, Screening and background checks and Credentialing for employees?
-
You own a bond with effective duration of 5.35 and effective convexity of 735.0. If the yield declines by 75 basis points you could expect an immediate capital gain of approximately:
-
Read the syllabus and read the course outcomes in the background information. 1)What questions do you have questions about the assignments in this course? 2)What is your plan for maintaining your...
-
In each of the following independent cases, document the system using whatever technique(s) your instructor specifies. a. Dreambox Creations (www.dreamboxcreations.com/) in Diamond Bar, California,...
-
Suppose a company has five-year, semiannual-coupon bonds carrying an 8 percent coupon rate that are selling for $1,200. What would be the aftertax cost of debt on these bonds if the appropriate tax...
-
Suppose a company has five-year, semiannual-coupon bonds carrying an 8 percent coupon rate that are selling for $1,200. What would be the beforetax cost of debt on these bonds if the appropriate tax...
-
Suppose a firm has 19 million shares of common stock outstanding with a par value of \($1.00\) per share. The current market price per share is \($18.35\). The firm has outstanding debt with a par...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App