On May 1, 2019, V company had a machine.

Related data

Acquisition Cost 2,450,000

Installation Cost 50,000

Estimated Residual Value 100,000

Estimated Useful Life 5 years

On September 1, 2020 the management decided to place the equipment held for sale.
On that date, the fair value less cost of disposal is 1,620,000

On December 31, 2020, the fair value less cost of disposal was 1,570,000

Questions. Make a precise computation and explanation.
1. How much is the impairment loss for 2020?

2. How much is gain or loss on the recoverable amount for 2020?
3. How much is the loss of reclassification in 2020?

B.
The related data of J-hope Company
Acquired biological assets on January 1, January 1amounting to 525,000

Additional biological assets were acquired on March 31, 2020, amounting to 320,500.At year-end, a change in fair value due to growth fluctuation amounted to 120,500and a change in fair value due to price fluctuation amounted to 75,900.The total amount harvested for the year is 620,800

Questions. Make a precise computation and explanation.
1. How much is the biological assets on December 31, 2020?
2. How much is PPE?

Answer rating: 100% (QA)

A 1 To compute for the impairment loss for 2020 we need to compare the carrying amount of the machine to its recoverable amount The carrying amount of the machine is the original cost of acquisition p... View the full answer