1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lubov Fominskaja [6]
3 years ago
6

Presented below is information related to equipment owned by Porto Company on December 31, 2017. Cost $5,600,000 Accumulated dep

reciation to date 640,000 Expected future net cash flows 4,000,000 Fair value 2,720,000 Assume that Porto will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Fill the missing amounts and choose the correct option. For Porto company, the recoverability test compares $ 4960000 to $ 4000000. As a result, the asset the recoverability test, because is/are less than so a on impairment is recorded in 2017. Prepare the journal entry to record depreciation expense for 2018.
Business
1 answer:
KATRIN_1 [288]3 years ago
7 0

Answer:

Depreciation $ 1,000,000 (debit)

Accumulated Depreciation $ 1,000,000 (credit)

Explanation:

<em>Step 1 Analyse whether there was an impairment </em>

Impairment of an asset happens when its Carrying Amount is greater than its Recoverable Amount.

<u><em>Carrying Amount</em></u>

Carrying Amount = Cost - Accumulated depreciation

                             = $5,600,000 - $640,000

                             = $ 4,960,000

<em><u>Recoverable Amount</u></em>

Is the higher of :

  1. Value in use : $4,000,000 and
  2. Fair Value less Cost to sell $2,720,000

Therefore Recoverable Amount is $4,000,000

<em><u>Impairment</u></em>

Carrying Amount  > Recoverable Amount, therefore the Equipment Was impaired

The impairement loss is $ 960,000

<em>Step 2 Calculate the depreciation 2018.</em>

Depreciation Charge = Cost / Useful life

                                   = ($5,600,000 - $640,000 -  $ 960,000) / 4

                                   = $ 1,000,000

<u>Journal</u>

Depreciation $ 1,000,000 (debit)

Accumulated Depreciation $ 1,000,000 (credit)

You might be interested in
When people have insurance against a certain event, the notion that those people are less likely to guard against that event occ
sp2606 [1]

Answer: When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a <u>moral hazard.</u>

Explanation: Moral hazard happens frequently in cases of insurance. If a person has a house, they can decide to install a vault because it reduces the risk of being robbed;

However, when the same person has arranged an insurance that covers the risk of theft of the house, they will have fewer incentives than in the previous situation, to install the security door and ultimately it will be able to increase the probability of the loss in this Theft case. This behavior, for example, before insurance coverage is called moral hazard.

4 0
3 years ago
Assessments of the currency of diversity plan
FinnZ [79.3K]

An equality and diversity policy is basically a written agreement for your organization on how you will avoid discrimination and provide a safe and inclusive environment for your members and service users.

<h3>What is meant by currency of a plan?</h3>

The currency in which the Policy is denominated, as described in the Policy Schedule, is referred to as the Policy Currency.

The assessment of the currency of diversity plan or policy therefore, is the process of ensuring that a diversity policy or plan is up to date.

Learn more about diversity plans:
brainly.com/question/13506026
#SPJ1

4 0
1 year ago
A company has issued 100,000 options of which 50,000 are "in the money at an average exercise price of $15.00. The Company’s sto
nikitadnepr [17]

Answer:

20,000 shares

Explanation:

The computation of given question is shown below:-

Dilutive number of shares:-

Proceeds from the options issue = 50,000 × $15

= $750,000

Shares issued = 50,000

Treasury shares purchased from proceeds of the options

= ($750,000 ÷ $25)

= 30,000

Dilutive number of shares outstanding = Shares issued - Shares purchased back

50,000 - 30,000

= 20,000 shares

8 0
3 years ago
Rienzi Farms grows sugar cane and soybeans on its 600 acres of land. An acre of soybeans requires 3 hours to plant and brings in
mezya [45]

Answer:

133 acres of sugar cane

and 300 of soybean provide a profit of $ 733,000

Explanation:

We setup the fromulas and use excel solver:

labor hours:  3 x sugar acres + 4 x soybean <= 1,600

profit  = 1,000 x sugar acres + 2,000 soybean

with the restriction soybean <= 300

                 SOLVER  

              acres          hours             PROFIT

sugar cane 133  x 3 = 399       x 1,000 =    133,000

soybeans 300  x 4 = 1,200           x 2,000 =<u>  600,000  </u>

                                                  TOTAL           733,000

6 0
3 years ago
Which of the following represent the newer tools of digital direct​ marketing? A. ​Telemarketing, direct-mail​ marketing, and ca
schepotkina [342]

Answer:

D. Online​ marketing, social media​ marketing, and mobile marketing

Explanation:

Digital direct marketing is a fusion of <em>digital </em>and <em>direct </em>marketing. <em>Digital </em>includes online and mobile (smartphone) media, while the traditional media often refers to telephones, TV, brick-and-mortar shops...

Since the term <em>direct</em> refers to the way of approaching customers, it is important to make a distinction between marketing channels and media that are aimed for a wider public, and the ones that have the possibility of targeting a specific customer or target group.

The only answer that includes types of DDM (digital direct marketing) is <em>D</em>.

Online and social media marketing are tightly related and are digital by nature. They have the functionality to target customers directly with the aid of <em>cookies </em>and data provided by social media. Also, mobile marketing is direct and digital too, as it is related to smartphones and unique phone numbers (thus, it is direct).

5 0
3 years ago
Other questions:
  • A characteristic of a schedule of Accounts Receivable is that
    6·2 answers
  • An open corporation does not allow the sale of their stock to the general public, only to investment capital brokers.
    12·1 answer
  • Prior to recording adjusting entries, the Office Supplies account had a $372 debit balance. A physical count of the supplies sho
    15·1 answer
  • Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The co
    7·1 answer
  • At the end of 2021, Havana contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to reti
    5·1 answer
  • Tom borrows $100,000 from his local bank to purchase inventory for his store for the upcoming holiday season. Tom's neighbor tel
    10·1 answer
  • Naomi is planning to get a job after graduating from college. Which explains why she should establish a positive credit history?
    9·2 answers
  • At what point should consumers stop researching a product?
    13·2 answers
  • You have been asked to calculate the internal rate of return for an investment with the following cash flows, using the Excel IR
    14·1 answer
  • a firm installs 1500 air conditioners which need to be serviced every six months. the firm can hire a team from its logistics de
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!