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Semenov [28]
3 years ago
13

Under U.S. GAAP, if the carrying value of a fixed asset was $50,000, the undiscounted expected future cash flows was $55,000, th

e discounted expected future cash flows was $51,000, and the selling price was $53,000, what is the amount of impairment loss?
Business
2 answers:
ira [324]3 years ago
7 0

Answer:

$0

Explanation:

According to US GAAP the reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset is reduced than the book value of the asset.

Amortized Cost / Book value = $50,000

Market Value = $53,000

Discounted Value = $51,000

There is no Impairment loss on this asset as the fair market value is more than the book value of the asset.

FrozenT [24]3 years ago
3 0

Answer:

Nil, asset is not impaired.

Explanation:

An asset is said to be impaired if and only if the carrying amount of the asset is more than the recoverable amount.

The recoverable amount is the higher of the value in use (which is the discounted expected future cash flows) and the fair value less cost to sell.

Recoverable amount = $53,000 (being the higher of the selling price and the discounted expected future cash flow)

Since this is higher than the carrying value of the asset, it is not impaired.

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Assume an annual interest rate of 8%. You have $1. What is the value of the $1 one year in the future
seropon [69]

Answer:

the future value is $1.08

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $1 × (1 + 0.08)^1

= $1 × 1.08

= $1.08

Hence, the future value is $1.08

3 0
2 years ago
41. You own 25% of Unique Vacations, Inc. You have decided to retire and want to sell your shares in this closely held, all equi
adelina 88 [10]

Answer:

e. $6.0 million

Explanation:

The computation of the total value of the firm is shown below:

The Value of the firm is

= Amount borrowed ÷ ownership percentage

= $1,500,000 ÷ 0.25

= $6,000,000

Hence, the total value of the firm is $6,000,000

Therefore the correct option is e.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

4 0
3 years ago
Which is the best way to prepare yourself for a job in the sports industry
Nataliya [291]
Are there any answer options? I know the answer if you have options
8 0
3 years ago
Read 2 more answers
James Corporation owns 80 percent of Carl Corporation's common stock. During October, Carl sold merchandise to James for $307,00
Arturiano [62]

Answer:

$69,075

Explanation:

James Corporation

Merchandise remaining in James’s inventory:

$307,000 × 50% = $153,500

Intra-entity gross profit:

$153,500 × 45% = $69,075.

James’s ownership percentage of Carl will have no impact on this computation.

Therefore the amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is $69,075

7 0
3 years ago
Stuart Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside S
Karo-lina-s [1.5K]

Answer:

a) Contribution from the special order= $52,640.  

b) Stuart should accept the order

Explanation:

The amount of contribution to profit from the special order is the difference between the revenue  and the relevant cost of variable cost of the special order.

The relevant cost of the special order is equal the sum of all variable cost only.

Note that the allocated facility overhead is irrelevant to whether to accept or reject the order. This is so because the costs would still be incurred either way.

Relevant variable costs of special order = (880 + 510) × 47 = $65,330

Sales revenue = 2,510 × 47 =  $117,970.00

Contribution from the special order =$117,970.00 -  $65,330

                                                            = $52,640.00

B) Stuart should accept the special order because it would increase its profit by $52,640.  

5 0
3 years ago
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