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3 years ago

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"IFRS uses a fair value test to measure impairment loss. However, IFRS does not use the first-stage recoverability test under GA

AP - comparing the undiscounted cash flow to the carrying amount. As a result, the IFRS test is"

1 answer:

stiv31 [10]3 years ago

3 0

Answer:

As a result, the IFRS test is more strict than U.S. GAAP.

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Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is

VikaD [51]

Answer:

The straight line depreciation for the first year is $24000

Explanation:

The straight line method of depreciation charges/allocates a constant amount of depreciation through out the useful life of the asset. The straight line depreciation expense for the year is calculated as follows,

Straight line depreciation = (Cost - Salvage Value) / Estimated useful life

Straight line depreciation = (135000 - 15000) / 5 = $24000 per year

Thus, the amount of depreciation for first year under straight line method is $24000

7 0

3 years ago

Which of the following is an example of a non-profit organization?

Anna007 [38]

Answer: Salvation army

Explanation: Non profit organisations are those organisation, which perform their operation with the objective of social welfare or charity.

Salvation army is a charitable organisation having more than 1.7 million members all over the world, whom they refer to as soldiers. This organisation mainly serves to the poor and hungry.

Thus, we can conclude that the right option is D.

8 0

2 years ago

A(n) _____ is an outside firm that specializes in the creation, production, and/or placement of the communications message and t

krek1111 [17]

Answer:

An advertising agency

Explanation:

An advertising agency is an agency that dedicates it's business to creating , planing , and managing all aspects of a client's advertising. It also specializes in promotions and marketing for its client.

Advertising can be carried out via websites, online and social campaigns, brochures, catalogs, direct mail, print ads, radio and TV commercials, and sales letters.

An advantage of an Advertisement agency is that it helps provide a creative environment that combines interesting activities with work, and great exposure too

6 0

2 years ago

Nor Corporation borrowed money using a discounted note at 94 with a stated 6% interest rate and a face amount of $400,000. What

kolezko [41]

Answer:

the effective rate of interest on the debt is 6.38%

Explanation:

The computation of the effective rate of interest on the debt is shown below:

Effective rate of interest is

= ($400,000 × 6%) ÷ ($400,000 × 0.94)

= $24,000 ÷ $37,600

= 6.38%

Hence, the effective rate of interest on the debt is 6.38%

It could be determined by applying the above formula so that the correct rate could come

8 0

3 years ago

On January 1, Year 1, the Starshina Company paid $25,000 for a photocopier with an estimated useful life of 4 years, and an esti

maksim [4K]

Answer: The amount of depreciation expense for Year 3 is $3,125.

Explanation: The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($25,000 - $5,000) / 4 years = $5,000 yearly depreciation expense.

Under the double-declining method, 100%/4years = 25%, then 25% multiplied by 2 to give 50%

At Year 1, 50% X $25,000 = $12,500

At Year 2, 50% X $12,500 ($25,000 - $12,500) = $6,250

At Year 3, 50% X $6,250 ($12,500 - $6,250) = $3,125 (the depreciation expense would stop at this stage since the amount falls below the residual value).

7 0

3 years ago