What do I do for these adjustments ? On 30 September 2019, Deedee realised that certain items
Fantastic news! We've Found the answer you've been seeking!
Question:
What do I do for these adjustments ?
Transcribed Image Text:
On 30 September 2019, Deedee realised that certain items of machinery appeared to have suffered a permanent diminution in value. The inventory produced by the machines was being sold below its costs, and this occurrence had affected the value of the productive machinery. The carrying value of those machines is £290,000, and their fair value less costs to sell is estimated at £120,000. The anticipated net cash inflows for the machiles are now £100,000 per annum for the next three years. A market discount rate of 10% is to be used in any present value calculations, and the discounting factors are presented below: Year Year 1 Year 2 Year 3 Discounting factor at 10% (PVIF) 0.909 I 0.826 0.751 On 30 September 2019, Deedee realised that certain items of machinery appeared to have suffered a permanent diminution in value. The inventory produced by the machines was being sold below its costs, and this occurrence had affected the value of the productive machinery. The carrying value of those machines is £290,000, and their fair value less costs to sell is estimated at £120,000. The anticipated net cash inflows for the machiles are now £100,000 per annum for the next three years. A market discount rate of 10% is to be used in any present value calculations, and the discounting factors are presented below: Year Year 1 Year 2 Year 3 Discounting factor at 10% (PVIF) 0.909 I 0.826 0.751
Expert Answer:
Answer rating: 100% (QA)
a IAS 38 requires an entity to recognize an intangible asset whether purchased or selfcreated at cos... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
What do CPP adjustments do and how do they do it?
-
What effect do adjustments and preferences have on the calculation of the ATNOLD?
-
What do these loops print? a. for (int i = 1; i < 10; i++) { System.out.print(i + " "); } b. for (int i = 1; i < 10; i += 2) { System.out.print(i + " "); } c. for (int i = 10; i > 1; i--) {...
-
Question)please make sure also calculate Total and Annual MacDUR. Find the Macaulay Duration for a \( 12 \% \) semiannual coupon bond with \( \$ 1,000 \) face, 3 years to maturity, and a YTM of \(...
-
Multiple Choice Questions Select the best response for each of the following questions. 1. Which of the following classifications of capital assets are often not capitalized? a. Land b. Inexhaustible...
-
In Example 3, change the element 3 to 2 and then find the inverse using the same method. Data from Example 3 Find the inverse of the matrix Therefore, which can be checked by multiplication. -3 6 4 5
-
In September 1990, the chairman of the Securities Exchange Commission criticized carrying investments at amortized cost and argued that, in the banking and savings & loan industries, "serious...
-
Consider the following note payable transactions of Tube Video Productions. 2014 Mar 1 Purchased equipment costing $80,000 by issuing an eight-year, 12% note payable. The note requires annual...
-
13. A 5.0-kg box slides down on the surface on a ramp (incline) that rises at 37 above the horizontal. If the acceleration of the box is 7.2 m/s, what is the force of friction on the box? (The x-...
-
Okmulgee Hospital (a large metropolitan for-profit hospital) is considering replacing its MRI equipment with a new model manufactured by a different company. The old MRI equipment was acquired three...
-
The Income and Expense Statement for September shows a food budget for $105,221. The actual food usage was $113,359. What would be the percent variance in food cost for September? The listed reasons...
-
Has to be from the case : Yeti in 2020: Can Brand Name and Innovation Keep It Ahead of the Competition? make a strategic group map for the industry. You must identify two dimensions that drive the...
-
1. Consider how you can apply a theory or theoretical concepts discussed in this class to a real-world situation How does this theory help you to better understand some situation or phenomena? How...
-
1. Define security analysis and intrinsic value. What are the factors that intrinsic value depends on? 2. What is a satisfactory investment? 3. Briefly define the three steps in security analysis. 4....
-
Using the Black-Scholes formula, how much would one call option to buy a share of Marathon have been worth on December 1, 2021? 1...
-
If the variable cost per unit increases, and all other factors rema in constant, the contribution margin ratio will increase. true false
-
Refrigerant R-12 at 30C, 0.75 MPa enters a steady flow device and exits at 30C, 100 kPa. Assume the process is isothermal and reversible. Find the change in availability of the refrigerant.
-
The directors of Apple Pie plc at the September 20X5 board meeting were expressing concern about falling sales and the lack of cash to meet a dividend for the current year ending 31 December at the...
-
The following extract is from Conceptual Framework for Financial Accounting and Reporting: Elements of Financial Statements and Their Measurement, FASB 3, December 1976. The benefits of achieving...
-
The board of White plc is discussing the filling of a vacant position arising from the death of Lord White. A list of possible candidates is as follows: (a) Lord Sperring who is a well known company...
-
A diesel engine of mass \(300 \mathrm{~kg}\) and operating speed \(1800 \mathrm{rpm}\) is found to have a rotating unbalance of \(1 \mathrm{~kg}-\mathrm{m}\). It is to be installed on the floor of an...
-
A sensitive electronic system, of mass \(30 \mathrm{~kg}\), is supported by a spring-damper system on the floor of a building that is subject to a harmonic motion in the frequency range \(10...
-
A machine of mass \(1150 \mathrm{~kg}\) is mounted on springs. A piston of mass \(m=25 \mathrm{~kg}\) moves up and down in the machine at a speed of \(600 \mathrm{rpm}\) with a stroke of \(350...
Study smarter with the SolutionInn App