Question
Vicent Company acquired a depreciable asset at the beginning of 2018 at a cost of $20 million. At December 31,2018, Madison gathered the following information
- Vicent Company acquired a depreciable asset at the beginning of 2018 at a cost of $20 million. At December 31,2018, Madison gathered the following information related to this asset:
Carrying amount (net of accumulated depreciation) ………………………. $18 million
Fair value of the asset (net selling price) …………………………………………. $ 17.5 million
Sum of future cash flows from use of the asset…………………………………$ 20 million
Present value of future cash flows from use of the asset…………………. $ 18 million
Remaining useful life of the asset……………………………………………………… 9 years
Required: Write down the journal entry at the end of 2018
- Follow IFRS
- Follow U.S GAAP
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Under IFRS 36 impairment is recognized when carrying value of an asset is less than the greater of ...
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International Accounting
Authors: Timothy Doupnik, Hector Perera
4th edition
77862201, 978-0077760298, 77760298, 978-0077862206
