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Peter Pan Co. has land and a building with a 20-year estimated useful life (from the date of acquisition). The company uses the straight-line depreciation
Peter Pan Co. has land and a building with a 20-year estimated useful life (from the date of acquisition). The company uses the straight-line depreciation method, with a full year of depreciation in the year of acquisition. (Click the icon to view the additional data.) Requirements a. Determine the amount of depreciation for 2011 to 2013 b. Determine the amount of impairment loss for 2014. c. Determine the amount of depreciation for 2014 to 2020. d. Determine the amount of impairment loss for 2021. e. Determine the amount of depreciation for 2021 to 2030. (Enter all currency in dollars, not in millions. Enter a "0" for any zero balances.) C. Requirement a. Determine the amount of depreciation for 2011 to 2013 Land Building More info Annual depreciation for 2011 to 2013 Requirement b. Determine the amount of impairment loss for 2014. Land Building The land and building were purchased in 2011 together for $43 million, with $25 million allocated to land and $18 million allocated to the building. The company has a December 31 year-end. Carrying value, January 1, 2014 Recoverable amount, January 1, 2014 Impairment loss At the beginning of 2014, Peter Pan evaluated its assets for impairment, and concluded the recoverable amount to be $21 million for the land and $9.35 million for the building. The company then wrote down both assets to these amounts. Requirement c. Determine the amount of depreciation for 2014 to 2020. At the beginning of 2021, the company again assessed the value of its assets and concluded the recoverable amounts to be $25.1 million for the land and $10 million for the building Land Building Annual depreciation for 2014 to 2020 Requirement d. Determine the amount of impairment loss for 2021. (Use a minus sign or pare Land Building Print Done Carrying value, January 1, 2021 Recoverable amount or unimpaired net carrying value, January 1, 2021 Impairment loss (recovery) Requirement e. Determine the amount of depreciation for 2021 to 2030. Land Building Annual depreciation for 2021 to 2030
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