Answer:
Jordan Enterprises
1) The impairment loss = $110,000.
2) Journal Entry to record the impairment loss:
Debit Broadcast License Impairment Loss $110,000
Credit Accumulated Impairment Loss $110,000
Explanation:
a) Data and Calculations:
Broadcast license original cost (book value) = $786,000
Market value of similar broadcast license = 676,000
Impairment loss = $110,000
b) US GAAP defines impairment loss as the decrease in an asset's net carrying value. This means that impairment loss arises when the book or net carrying value is greater than the future estimated cash flows or the market value of the asset.
It should be the Second one that fits the best answer
Answer:
Financial disadvantage of 138,600
Explanation:
![\left[\begin{array}{cccc}&produce&buy&Differential\\$Purchase&&-447,000&-447,000\\$Avoidable\: Cost&-283,400&0&283,400\\$Unavoidable\: Cost&-114,400&-114,400&0\\$Total Cost&-397,800&-561,400&-163,600\\$additional segment&0&25,000&25,000\\$Net Effect&-397,800&-536,400&-138,600\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26produce%26buy%26Differential%5C%5C%24Purchase%26%26-447%2C000%26-447%2C000%5C%5C%24Avoidable%5C%3A%20Cost%26-283%2C400%260%26283%2C400%5C%5C%24Unavoidable%5C%3A%20Cost%26-114%2C400%26-114%2C400%260%5C%5C%24Total%20Cost%26-397%2C800%26-561%2C400%26-163%2C600%5C%5C%24additional%20segment%260%2625%2C000%2625%2C000%5C%5C%24Net%20%20Effect%26-397%2C800%26-536%2C400%26-138%2C600%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The allocate cost and teh depreciation cost will be unavoidable, so should be considered as a cost for the purchase option
Also the inocme from teh additional segment is only considered for the purchase option
<u>The avoidable cost will be:</u>
Direct Materials
Direct Labors
Variable overhead
Supervisor
Thse cost are zero in the purchase escenario
Pushes herself and is determined to finish something she started.