Question
On 1/1/2015, a machine was purchased with a value of 70,000 dinars, a useful life of 10 years, and a scrap value of zero. The
On 1/1/2015, a machine was purchased with a value of 70,000 dinars, a useful life of 10 years, and a scrap value of zero. The company uses the straight-line method in calculating depreciation and uses the cost model in evaluating its assets at the end of the year. On December 31, 2017, as a result of the presence of indications of a decrease in the value of the asset, you were given the following data: the expected selling price of the asset is 33,000 dinars, the value in use (use) is 35,000 dinars, and the undiscounted value of the benefits from the use of the asset is 38,000 dinars. On December 31, 2020, the above indicators disappeared, and you had the following data: the recoverable value of 32,000 dinars, and the undiscounted value of future benefits from the use of the original 34,000 dinars.
Required: 1- Calculating the impairment loss on the asset on 31/12/2017
2- The value of the asset as on 31/12/2017
3- How will the asset be depreciated in the coming years after 31/12/2017
4- Accounting treatment after the emergence of new indicators on 31/12/2020
5- The book/carrying value of the asset as 12/31/2020, and an explanation of how to show the account of the machine in the balance sheet.
6- How will the asset be depreciated in the coming years after December 31, 2020
7- A photocopy of the depreciation complex account, explaining all the movements from the date of purchase until 12/13/2020 in one account Photographing the declining complex account, explaining all movements from the date of purchase until 12/13/2020 in one account.
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