FREE Trial

Phantom Company was preparing the annual financial statements and, as part of its year-end procedures, prepared the

Question:

Phantom Company was preparing the annual financial statements and, as part of its year-end procedures, prepared the following alphabetized schedule based on adjusted values at March 31, 2020:

image

What, if any, impairment losses need to be accounted for? Assume Phantom Company recorded no impairment losses in previous years.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:

Recoverable Accumulated Amount Asset Cost Depreciation Building. Computer Furniture. $1,200,000 3,500 $465,000 1,800 53,000 $735,000 200 5,000 79,000 Land. -0- 630,000 284,000 790,000 172,000 117,000 Machine

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 80% (10 reviews)

Impairment losses occurred on the computer and the furniture in the amounts ...View the full answer


answer-question-section
Answered By
tutor-profile-image
Diksha Bhasin
I have been taking online teaching classes from past 5 years, i.e.2013-2019 for students from classes 1st-10th. I also take online and home tuitions for classes 11th and 12th for subjects – Business Studies and Economics from past 3 years, i.e. from 2016-2019. I am eligible for tutoring Commerce graduates and post graduates. I am a responsible for staying in contact with my students and maintaining a high passing rate.
5.00+ 1+ Reviews 10+ Question Solved
Related Book For  book-img-for-question
Fundamental Accounting Principles Volume I

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

See More Books
Question Posted:
See More Questions

Related Video

Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.

Students also viewed these Business questions

Using Computer Science In Digital Gaming Careers 1st Edition - ISBN: 1508175225 - Free Book