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harkovskaia [24]
3 years ago
15

Lawson Corp. uses IFR.S and the cost model for intangible assets. On March 1, year 1, Lawson acquired intangible assets with an

indefinite life for $100,000. On December 31, year 1, it was determined that the recoverable amount for these intangible assets was $90,000. On December 31, year 2, it was determined that the intangible assets had a recoverable amount of $94,000. What is the impairment gain or loss recognized in year 1 and year 2 on the income statement?
Year I Year 2
a. $10,000 loss $6,000 loss
b. $10,000 loss $4,000 gain
c. $10,000 loss $0
d. $0 $0
Business
1 answer:
Leto [7]3 years ago
4 0

Answer:

b. $10,000 loss $4,000 gain

Explanation:

Since the carrying amount of the intangible assets is greater than its recoverable amount in the year 1, therefore the Lawson Corp shall recognised the impairment loss in respect of intangible assets in year 1 as follows:

Impairment loss=Carrying amount of intangible assets-recoverable amount of intangible asset

Impairment loss=$100,000-$90,000=$10,000 loss

Since the recoverable amount of the intangible assets is greater than its carrying amount  in the year 2, therefore the Lawson Corp shall reverse the impairment loss recognised in year 1 in the following way:

Gain=recoverable amount of intangible asset-Carrying amount of intangible assets

Gain=$94,000-$90,000=$4,000 Gain

So based on the above calculations,the answer shall be b. $10,000 loss $4,000 gain

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At January 1, 2021, Transit Developments owed First City Bank Group $600,000, under an 11% note with three years remaining to ma
Lana71 [14]

Answer:

Dr Land 125,000

Cr Gain on disposition of assets125,000

Dr Notes payable 600,000

Dr Interest payable 66,000

Cr Gain on troubled debt restructuring 216,000

Cr Land 450,000

Explanation:

Preparation of journal entry(s)

Based on the information given we were told that they group have agreed to settle Transit’s debt innexchange for land which have a fair value amount of $450,000 mean while the Transit purchased the land in 2017 for the amount of $325,000 which means that the Journal entry will be :

Dr Land 125,000

($450,000 – 325,000)

Cr Gain on disposition of assets125,000

Based on the information given we were told that Transit owed First City Bank Group the amount of $600,000 that has an 11% note which means that the Journal entry will be :

Dr Notes payable 600,000

Dr Interest payable 66,000

(11% x $600,000)

Cr Gain on troubled debt restructuring 216,000

Cr Land 450,000

7 0
2 years ago
Bạn phải gửi 1 số tiền vào NH là bao nhiêu nếu sau 7 năm nữa bạn sẽ nhận được 50000$ (cho biết lãi suất NH là 10%/1năm).
aliina [53]

Answer:

Hiệu trưởng, P = $71428.57

Explanation:

Cho các dữ liệu sau đây;

Thời gian = 7

năm Lãi suất = 10%

Lãi suất đơn giản = $50,000

đô la Để tìm số tiền gốc;

Về mặt toán học, lãi đơn giản được tính bằng công thức này;

S.I = \frac {PRT}{100}

Ở đâu;

  • S.I là lãi suất đơn giản.
  • P là hiệu trưởng.
  • R là lãi suất.
  • T là thời gian.

Thay vào công thức, ta có;

50000 = \frac {P*10*7}{100}

50000 = \frac {70P}{100}

Cross-multiplying, we have;

50000 * 100 = 70P

5000000 = 70P

P = \frac {5000000}{70}

<em>Hiệu trưởng, P = $71428.57</em>

8 0
3 years ago
On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred: Factory Manager Salary $7,000 Facto
qaws [65]

Answer:

Explanation:

check the file attached for full explanation

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7 0
3 years ago
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jarptica [38.1K]

Answer:

Explanation:

What’s the question?!

3 0
3 years ago
As described in your text, Brown and Finn (1982) found that attitudes regarding alcohol were somewhat different for 12-year-olds
Leno4ka [110]

Answer:

Option "A" is the correct answer to the following statement.

Explanation:

Cross-sectional observational estimates are based on findings with Various data that exist in various groups in the same period. This indicates that there was no other procedure wad made, so no factors are influenced by the analyst.

In this situation, there were various age groups involved in the Experiment at the same time.

8 0
3 years ago
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