$$

 

 

 The company purchased the equipment on October X for $ and estimated that the equipment will use for  years and has a residual value of $  The equipment has the following capacity:  service hours. December  is the reporting date. The equipment provided  and  service hours in X and X respectively.  

 

Required marks:

Calculate depreciation expense for X and X using different methods in the following table:

Straightline Doubledecliningbalance Activity method

X

X

The company provided the data of PP&E in a cashgenerating unit CGU as follows:

Cost Accumulated Depreciation

Equipment A $ $

Equipment B

Equipment C

The units fair value less costs to sell was $ The units future cash flows

was $ and its present value was $ The company adopted IFRS.

Required marksNote: round to the nearest dollar:

Prepare journal entries to record impairment.

If the recoverable amount of Equipment C is $ prepare journal entries to record impairment.

If the recoverable amount of Equipment C is $ prepare journal entries to record impairment.