PRINTER VISION Exercise 11-22 The information that follows relates to equipment owned by Headlands Limited at December 31, 2020 Cost $10.440,000 Accumulated depreciation to date 1,100,000 Expected future net cash flows (undiscounted) 8.120.000 Expected future net cash flows (discounted, value in use) 7,356,000 Fair value 7.192,000 Costs to sell (costs of disposal) 58,000 Assume that adlands will continue to use this asset in the future. As at December 31, 2020, the equipment has a remaining useful le at four years. Hedlunds uses the straight li method of deprecation Assume that Headlands is private company that follows ASPE. 1. Prepare the journal entry at December 31, 2020, to record asset impairmeotany 2. Prepare the journal entry to record depreciation expense for 2021. 1. The mentaires December 31, 2031 is $7.54 million. Prepare the journal entry, any, to record the increase in fair value (Cred account titles are automatically indented when the amount is entered. De not indent manually. If he entry is required to the anter for the amounts) Assume that Headlands is a private company that follows ASPE. 1. Prepare the journal entry at December 31, 2020, to record asset impairment, if any. 2. Prepare the journal entry to record depreciation expense for 2021 3. The equipment's fair value at December 31, 2021 is $7.54 million. Prepare the journal entry, if any, to record the increase in fair value (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If ne entry is required, select "No Entry for the accide and enter o for the amounts.) Date Account Titles and Explanation Debit Credit (1) December 31, 2020 No. (2) December 11, 2021 ) December 31, 2021 TO ACCOUNT TON BACIE SHONE LIST OF ACCOUNTS LEEK TOTECT Repeat the requirements in (a) above assuming that Headlands is a public company that follows IFRS. (Credit account titles are automatically indented when the amount entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) No Date Account Titles and Explanation (1) December 31, 2020 Debit Credit (2) December 11, 2021 (3) December 31, 2021 HOW LIVE O ACCOUNT Exercise 11-23 The information that follows relates to equipment owned by Pearl Uinnited at December 31, 2020: Cost 59,130,000 Accumulated depreciation to date 1,020,000 Expected future net cash flows (un discounted) 7.140,000 Expected future net cash flows (discounted, value in use) 6,477,000 Fair valut 6.324,000 Costs to sell (costs of disposal) 51,000 Mt December 31, 2020. Peart discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It is enacted that the cost of Gipuar will total $51.000. Assume that Pat is a private company that follows ASPE. (Credit account titles are automatically indented when the amount interest. Do not under armo entry is required, select "No Entry for the account titles and enter for the amounts) 1. Prepare the journal entry of December 31, 2020, to record se imparment, any. 2. Prepare the journal entry to record depreciation expense for 2021 3. Assume that the set was not sold by December 31, 2021. The couiment fair value and recoverable amount on this date is 16 millimet record the increase in fair vali. It is expected that the costs of disposal will total $1,000 WINTER VERSION At December 21, 2020. Peart discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It is expected that the costs of disposal will total $51.000 Assume that Pearl is a private company that follows ASPE. (Credit account titles are automatically indented when the amount is entered. Do not intent manually. I ne entry is required, select "No Entry for the account titles and enter for the amounts) 1. Prepare the journal entry at December 31, 2020, to record asset impairment, if any. 2. Prepare the journal entry to record depreciation expense for 2021. 3. Assume that the asset was not sold by December 31, 2021. The equipment's fair value and recoverable amount) on this date 8 $6.6 mio. Prepare the loomal entry to record the increase in fair value. It is expected that the costs of disposal will total $51.000 No. Account Titles and Explanation Debit Credit 01) Lots on Imoment Accumulated Depreciation Depreciation Expanse Accumulated Depreciation Repeat the requirements in (a) above assuming that Pearl is a public company that follows IFRS, and that the asset meets all criteria for dassification as an asset held for sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Debit Account Titles and Explanation (1) Credit (3) SHOW LIST OF ACCOUNT Brief Exercise 11-21 In its 2020 annual report, Pearl Umited reports beginning of the year total assets of $2,068 million, and of the year total assets of $2.462 million total revenue of $2.557 million and net income of $111 million. Calculate Pearl's asset turnover ratio (Round answer to 2 decimal places, c.0.52.75.) Asset turnover ratio times LI TOT Calculate Pearl's profit margin (Round answer to 2 decimal places, e. 52.756.) profit margin LIETOTT Calculate Pearl's profit margin (Round answer to 2 decimal places, ... 52.759.) Profit margin LINK TITET Calculate Pearl's rate of return on assets (1) using the asset turnover and profit margin, and (2) using net income. (Round answers to 2 decimal places, c.9. 52.730.) Rate of return on assets (1) Osing the tumover and profit margin 02) Using net income LETO TE