On 1 January Year 1 Entity Q purchased for GH$240.000 a machine with an estimated useful life
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Question:
On 1 January Year 1 Entity Q purchased for GH$240.000 a machine with an
estimated useful life of 20 years and an estimated zero residual value.
Depreciation is on a straight-line basis.
The asset had been re-valued on 1 January Year 3 to GH$250,000, but with
no change in useful life at that date.
On 1 January Year 4 an impairment review showed the machine's
recoverable amount to be GH$100,000 and its remaining useful life to be
10 years.
Calculate:
a)
The carrying amount of the machine on 31 December Year 2 and
hence the revaluation surplus arising on 1 January Year 3.
b)
The carrying amount of the machine on 31 December Year
3
(immediately before the impairment).
C)
The impairment loss recognised in the year to 31 December Year 4.
d) The depreciation charge in the year to 31 December Year 4.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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