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umka21 [38]
3 years ago
8

Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its restaurants located in the center

of a large urban area have experienced declining profits due to declining population. The company’s management has decided to test the assets of the restaurants for possible impairment. The relevant information for these assets is presented below.
Book value $6.5 million
Estimated undiscounted sum of future cash flows 4.0 million
Fair value 3.5 million

(1) Determine the amount of the impairment loss.
(2) Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $6.8 million and fair value is $5 million.
Business
1 answer:
zalisa [80]3 years ago
6 0

Answer:

1. $2.5 million

2. $0

Explanation:

1. Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored  

In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value  - fair value

= $6.5 million  - $4.0 million

= $2.5 million

2. In this case, the sum of future cash flows is exceeded than the book value. So, no impairment loss would be recognized i.e zero amount

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Answer:1. The reason that the varsity team lost to JV team is lack of working together as a team.

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1:Even though the varsity team consisted of the best individuals for speed , strength, coordination and endurance, they lacked the cohesiveness to perform as a unit. Each of the eight individual rowers had to be single-mindedly attuned to one another in order to synchronize their rowing and perform in unison. Unfortunately, the team also too many disruptor and lacked a leader.

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3 years ago
The following data are given for Harry Company:
Anon25 [30]

Question

Kindly note that the original question is not complete. The closest question found similar to the original is given below.

The following data are given for Harry Company:

Budgeted production 1,001 units

Actual production 920 units

Materials:

Standard price per ounce $1.904

Standard ounces per completed unit 10

Actual ounces purchased and used in

production 9,476

Actual price paid for materials $19,426

Labor:

Standard hourly labor rate $14.09 per hour

Standard hours allowed per completed unit 4.3

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Actual total labor costs $76,993

Overhead:

Actual and budgeted fixed overhead $1,155,000

Standard variable overhead rate $27.00 per standard labor hour

Actual variable overhead costs $132,664

Overhead is applied on standard labor hours.

Determine the labour rate variance.

Answer:

Labour rate variance $10,234.58 unfavorable

Explanation:

<em>The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours                                                                                           </em>

<em>Actual labour hours = 4,738</em>

                                                                                          $

4,738  hours should have cost (4,738 ×  $14.09) =  66,758.42                  

but did cost  (actual cost)                                           <u>76,993.00 </u>

labour rate variance                                                   <u>  10,234.58 unfavorable</u>  

Labour rate variance $10,234.58 unfavorable

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Answer:

we are not given any options, so I will show you the adjusting journal entry:

Dr Investment in bonds 75,000

    Cr Unrealized holding gains 75,000

Northern actually made a profit by simply holding these bonds since they appreciated from $600,000 to $675,000, but it cannot record the gains immediately until they are sold. That is why unrealized holding gains is credited.

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