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
pentagon [3]
3 years ago
8

Assume that Jordan ​Enterprises's radio broadcast license is renewable at the end of each 10​-year term and management has provi

ded evidence that approval of the renewal is highly probable. In this​ case, the broadcast license qualifies as an​indefinite-life intangible asset and is not subject to amortization.​ Therefore, the firm carries the broadcast license at its original cost of $786,000.
On December ​31, 2015 the company noted substantial declines in radio advertising revenues over the past year due to expanded satellite radio​subscriptions, Internet​ broadcasts, and the use of iPod players. Based on the required annual review and consideration of the available impairment​ indicators, management believes that it is more likely than not that the broadcast license may be impaired.​ Therefore, the company must test the broadcast license for impairment. Similar broadcast licenses have been sold in auctions for $676,000.
Assuming that renewal of the broadcast license is probable for this​ indefinite-life intangible​ asset, analyze the accounting for impairment and prepare the journal entries.
1.) Conduct the impairment test indicated for​indefinite-life intangible asset at the end of the year and determine the impairment​ loss, if any. ​(If you selected​ "No" that an impairment loss is not​ indicated, then leave the impairment loss input cell blank. Show a loss with a parentheses or minus​ sign.)
2.) Next, prepare the journal entry required to record any impairment loss. ​(Record debits​ first, then credits. Exclude explanations from any journal entries. If no entry is required select​ "No Entry​ Required" on the first line of the journal entry table and leave all remaining cells in the table​blank.)
Business
1 answer:
yan [13]3 years ago
8 0

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.

You might be interested in
Copy equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $8,000 and
sergeinik [125]

Answer:

Results are below.

Explanation:

<u>The depreciable cost is the result of deducting from the purchase price the salvage value:</u>

<u></u>

Depreciable cost= 56,000 - 8,000

Depreciable cost= $48,000

<u>The depreciable rate is the depreciation that the asset suffers in one year express as a percentage:</u>

<u></u>

Depreciation rate= 1/5 = 0.2 or 20% per year

<u>Finally, the units of production depreciation for the first year:</u>

Annual depreciation= [(original cost - salvage value)/useful life of production in copies]*number of copies

Annual depreciation= (48,000/1,000,000)*240,000

Annual depreciation= 0.048*240,000

Annual depreciation= $11,520

5 0
3 years ago
Conventional promotional efforts and "sale speak" should be used in all of a company's social media conversations to persuade th
Keith_Richards [23]

The answer to the statement is false. It is because it is restricted to use conventional promotional efforts in which it shouldn’t be used.  As this is only applicable in the right place and time, addition to that, sale speak shouldn’t also be used because audiences usually rejects it.

7 0
3 years ago
Additional information: The net cash provided by operating activities for 2017 was $190,800. The cash used for capital expenditu
Studentka2010 [4]

-- missing information--

Balance Sheet

December 31, 2017

Assets  

Current assets  

 Cash                                  60,100

 Debt investments          84,000

 Accounts receivable (net)       169,800

 Inventory                         145,000

  Total current assets        458,900

Plant assets (net)         575,300

Total assets                                            1,034,200

Liabilities and Stockholders’ Equity  

Current liabilities  

 Accounts payable          160,000

 Income taxes payable    35,500

  Total current liabilities          195,500

Bonds payable                  200,000

  Total liabilities                            395,500

Stockholders’ equity  

 Common stock                  350,000

 Retained earnings           288,700

 Total stockholders’ equity  638,700

Total liabilities and stockholders’ equity  $1,034,200

Income Statement

For the Year Ended December 31, 2017

Net sales   $2,218,500

Cost of goods sold   1,012,400

Selling and administrative expenses   906,000

Interest expense   78,000

Income tax expense   69,000

Net income   $ 153,100

Answer:

<u><em>  (i) Working capital.</em></u><em>    </em> $  263,400

 <u><em> (ii) Current ratio</em></u><em>                </em> 2.35

<u><em> (iii) Free cash flow</em></u><em>.         $  </em>98,800

<em><u>  (iv) Debt to assets ratio.</u></em><em>   38.2%</em>

<u><em> (v) Earnings per share. </em></u><em>     $ </em>3.062

Explanation:

<u><em>  (i) Working capital.</em></u>

Current Assets - Current Liabilities:

458,900 - 195,500 = 263,400

 <u><em> (ii) Current ratio</em></u>

Current Assets / Current Laibilities

  458,900 / 195,500 = 2.35

<u><em> (iii) Free cash flow. </em></u>

cash from operations less cash used for capital expenditures

190,800 - 92,000 = 98,800

<em><u>  (iv) Debt to assets ratio.</u></em>

 Liaiblities /    Assets

 395,500 /   1,034,200  = 0.382421195

<u><em> (v) Earnings per share.</em></u>

net income / average shares outstanding

$ 153,100 / 50,000 = 3.062

7 0
3 years ago
What is the difference of communism and socialism?<br><br>​
quester [9]
Communism there is No private ownership,central government,No class Distinction, Production for basic needs.


For socialism there is limited Private owner ship, government and private entities,Limited class distinctions and production for societal needs .
4 0
2 years ago
Assume you plan to start a new enterprise; you know the probability of having losses for the first three years of operations is
Gnesinka [82]

Answer:

A. C corporation.

Explanation:

In the case of c corporation, it does not permit for setting off the business or entity loss that opposed to the income held from the other sources

so in the given scase, the c corporation does not permit for offsetting the losses

And, rest of the options should be permitted for the same

therefore the option a is correct

6 0
2 years ago
Other questions:
  • Grason Corporation is preparing a budgeted balance sheet for 2015. The retained earnings balance at December 31, 2014 was $533,5
    10·1 answer
  • Longobardi Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginnin
    11·1 answer
  • Rgnijdlxkdoefjinvkmw,lpeijfmodkwmeifvw
    8·1 answer
  • The story of how prilosec otc successfully used sponsorship of bunco gaming, in particular the bunco world championship illustra
    13·1 answer
  • I want to study accounting at levels 2 and 3. What can you offer me in my choice of subjects? Would this come under 'Business'?
    8·1 answer
  • Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information:
    11·1 answer
  • Among foragers the status of women declines when they provide most of the food. men and women are equal; there is no gender ineq
    14·1 answer
  • MY HERO ACADEMIA FANS!!!!!!
    9·2 answers
  • Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $110 for a comforter. Misu Sheet wants to adv
    15·1 answer
  • If conversion costs are added evenly throughout the production process and the unit have made it 50% of the way through the prod
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!