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
VLD [36.1K]
3 years ago
11

Technique Co. has equipment with a carrying amount of $1,600,000. The expected future net cash flows from the equipment are $1,6

30,000, and its fair value is $1,360,000. The equipment is expected to be used in operations in the future.
What amount (if any) should Technique report as an impairment to its equipment?


a. No impairment should be reported.
b. $240,000
c. $30,000
d. $270,000
Business
1 answer:
Vesnalui [34]3 years ago
6 0

Answer:

correct option is a. No impairment should be reported

Explanation:

given data

carrying amount = $1,600,000

net cash flows = $1,630,000

fair value = $1,360,000

to find out

amount report as an impairment to its equipment

solution

we know that here impairment loss is carrying amount - higher of fair market value and value in use    ..................1

here recoverable value is = $1630000

so

impairment loss is = $1600000 - $1630000

impairment loss  = - $30000

here loss is negative

so that correct option is a. No impairment should be reported

You might be interested in
the stock price jumps twice in a given year. if it jump up, it goes up by 10%, if it goes down, it goes down by 20%. the stock i
cestrela7 [59]

The value of European Put option is 9.

<h3>What is Put option?</h3>

Under derivative securities market an option whose value depend on the underlying item where delivery is not made generally & net settlement done by squaring off the position and depends on the volatility of market.

Put Option is a bearish school of thought where investor thinks the market will decline & the value will be below the exercise price.

In hedging the position of investor make certain not better, therefore the value of put option lies between zero or difference value among the spot price & exercise price with discounting annual market interest rate:

Spot = 70

Exercise = 65

Future Price = 70 × 80% = 56

Rate = 4 % Compounded semi annually.

Value of Put = Spot Price - Exercise Price

                     = 56 - 65

                     = 9  

Thus the value of put option will be 9 (65-56).

To know more about Put option refer:

brainly.com/question/24016129

#SPJ1

6 0
1 year ago
John is an employee at a car manufacturer. today he has come into work to find that production has stopped because the governmen
Trava [24]

John most likely lives in a<u> "planned economy".</u>


A planned economy is a sort of financial framework where venture and the assignment of capital merchandise happen as per vast monetary and creation designs. A planned economy may utilize brought together, decentralized or participatory types of financial planning. A planned economy is a monetary framework in which the administration controls and manages generation, dispersion, costs, etc.

5 0
3 years ago
What are the roles of the control unit and the alu?
makvit [3.9K]
An arithmetic logic unit is a digital circuit used to perform arithmetic and logic operations. It signifies the essential building block of the central processing unit of a computer. The modern central processing unit contain very powerful and complex arithmetic logic unit. In addition to arithmetic logic unit, modern central processing unit contain a control unit.
8 0
3 years ago
Richard is a secondary science teacher at a Catholic High School. He has worked there for three years. When he was first intervi
vredina [299]

Explanation:

In the scenario described by the question above, we saw that the main problems in the workplace begin with the hiring of Professor Richard, this is due to the fact that a Catholic school is based on values ​​and dogmas that are religious symbols of tradition, respect and culture.

A religious dogma is one considered the fundamental and indisputable point of a belief.

Therefore, at the time of the job interview, Richard gave the impression that his beliefs were aligned with those of the school and the Catholic spirit, but nevertheless, he posts extensive social media where he criticizes and defends values ​​contrary to those of the Catholic institution he works for. , which generated revolt in the parents of the students and culminated in their contractual termination.

In return, the school should establish clearer and more effective conduct policies for employees, especially in an institution based on specific values.

The school should better analyze Richard's professional conduct before terminating his contract, making it clear to him that, regardless of his individual positions, in the workplace he should act in accordance with the company's current rules and procedures.

4 0
3 years ago
Tune Store reports inventory using the lower of cost and net realizable value (NRV). Information related to its year-end invento
Genrish500 [490]

Answer:

inventory impairment/cost of good sold (p/l)   $500

Explanation:

IAS 2 requires that inventory be initially recognized at cost including cost of purchase and other necessary cost incurred in getting the inventory to the location where it becomes available for sale.

Subsequently, the item of inventory is carried at the lower of cost or net realizable value (NRV).

              Quantity    Unit Cost     Unit NRV      Lower of cost/NRV  Amount

Model A    100               $100              $ 120       $100                       $10,000

Model B      50                $50               $ 40        $40                         $2,000

Model C      20                $200             $210        $200                      $4,000

Adjustment required = 50 ($50 - $40)

=$500

This posted as

Debit inventory impairment/cost of good sold (p/l)   $500

Credit Inventory account                                              $500

5 0
3 years ago
Other questions:
  • Ms. Parker would like to have $99.000 buy a new car in 8 yearsTo accumulate $99,000 in years, how much should she invest monthly
    12·1 answer
  • Suppose the president of the united states announces a new set of reforms that includes a new​ anti-inflation program. assuming
    15·1 answer
  • The balance sheet caption for common stock is the following: Common stock, $5 par value, 2,550,000 shares authorized, 1,120,000
    14·1 answer
  • When you compose a message, you want your audience to find the information it needs quickly and to understand it. Your message s
    11·1 answer
  • The balance sheet reports revenues and selling costs for a period of time.
    5·1 answer
  • The quantity demanded of a good is the amount that buyers are a. willing to purchase. b. willing and able to purchase. c. willin
    8·1 answer
  • Jan sold her house on December 31 and took a $10,000 mortgage as part of the payment. The 10-year mortgage has a 10% nominal int
    7·1 answer
  • A customer sells short 100 shares of ABC stock at $63 per share. The stock falls to $47, at which point the customer writes 1 AB
    12·1 answer
  • 8. Problems and Applications Q8 Social Security benefits are increased each year in proportion to the increase in the CPI, even
    8·1 answer
  • If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and e
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!