Question
In Year 1, Manny Company purchased a piece of equipment with a cost of 80000 and a useful life of 5 years. At the beginning
In Year 1, Manny Company purchased a piece of equipment with a cost of 80000 and a useful life of 5 years.
At the beginning of Year 3, the company has determined the following:
| Expected future cash flows | $46000 |
| PV of expected future cash flows | $41000 |
| Net selling price | $42000 |
- Assuming the company used straight-line depreciation and the residual value is 0, what is the depreciation in Years 1 and 2 for US GAAP and IFRS?
- What is the net carrying amount at the beginning of Year 3 for US GAAP and IFRS?
- What is the impairment, if any, for US GAAP and IFRS as of the beginning of Year 3?
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
17th Edition
013517614X, 978-0135176146
