Question

Hope owns a car that was involved in an accident at the year-end. It is barely...

Hope owns a car that was involved in an accident at the year-end. It is barely useable, so the value in use is estimated at $100 000. However, the car is a classic and there is a demand for the parts. This results in a fair value less costs to sell of $300 000. The opening carrying value was $800 000 and the car was estimated to have a life of eight years from the start of the year. Identify the recoverable amount of the car and any impairment required.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Entity A owns a motor van that was involved in an accident at the year-end of...
Entity A owns a motor van that was involved in an accident at the year-end of 2019. It is barely useable, so the value in use is estimated at $1,500,000. However, the motor van is a common model and there is a demand for its parts. This results in the fair value of $3,600,000 and costs of disposal of $100,000 respectively. On 1 January 2019, the carrying amount of the motor van was $8,000,000 and the van was estimated to...
The following information relates to three assets held by Entity A at the year-end of 2019:...
The following information relates to three assets held by Entity A at the year-end of 2019: Machine Plant Motor van Carrying amount 1000 500 400 Value in Use 800 600 350 Fair Value less Costs of Disposal 900 650 300 These assets are used by Entity A for generating economic benefits in its business operation. REQUIRED: According to relevant accounting standards, measure: the impairment loss which was charged in the Statement of Profit or Loss for the period ended 31...
1. Gibbon Corp., a Canadian public corporation, owns equipment for which the following year-end information is...
1. Gibbon Corp., a Canadian public corporation, owns equipment for which the following year-end information is available: Carrying amount (book value) $59,000 Recoverable amount 52,000 Fair value less disposal costs 55,000 Which of the following best describes the proper accounting treatment for Gibbon's equipment? a. It is not impaired and a loss should not be recognized. b. It is impaired and a loss must be recognized, with no reversal possible. c. It is not impaired, but a loss must be...
Long-Term Asset Acquisition Bruce and Emmett (B & E) is considering a significant equipment replacement. B...
Long-Term Asset Acquisition Bruce and Emmett (B & E) is considering a significant equipment replacement. B & E would like to replace some of their equipment before December 31, 2019. The equipment originally cost $500,000 and the equipment’s accumulated depreciation balance at the end of 2019 is will be $450,000. At this point the equipment is depreciated to its salvage value. Your long-term asset accountant, Boris, tells you about four equipment options as follows: construct new equipment and sell the...
1. What is an ISP (Integrated Service Provider) for supply chains? (1 point) A. A consultant...
1. What is an ISP (Integrated Service Provider) for supply chains? (1 point) A. A consultant agency which integrates the supply chain for companies B. A 2 PL or a 3PL, but not a 4PL C. A company supplying transportation and warehousing services D. A logistics service company specialized in suppling VAS (value added services) 2. What characterizes a 4 PL? (1 point) A. They are non-asset based and provides integrated services primarily supplied by asset based providers, for example...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
In February 2012, the Pepsi Next product was launched into the US market. This case study...
In February 2012, the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Pepsi Next Case Study Introduction Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012). The new product...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...