3MWhite Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS.halance sheet under Property, plant, and equipment. The appraisal value for the land (whichOn June 30, 20X0, White purchased land for €3,000,000. White reports land values on theyou can assume is the same as the recoverable amount) was reported as:Appraisal Date12/31/20X012/31/20X112/31/20X2Land Value€3,150,000€2,750,000€2,850,000P11-23IFRS impairment andrevaluation (LO 11-10)2Required:1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes invalue to this land asset if White chooses the IFRS cost model to value this property.Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes invalue to this land asset if White chooses the IFRS revaluation model to value this property.

Answer information:Step 1:Accounting for Land Under IFRS Cost Model and Revaluation…

Answered: 3M White Ski Resorts operates a series…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11EB: The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining...

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Dog Apr. 1: Acquired land and communication equipment in a lump-sum purchase. Total cost was 330000 paid in cash. An independent appraisal valued the land at 259875 and the communication equipment at 86625. (Record a single compound journal entry.)
A. MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years. The fair values of the property were measured as below: Date RM (in million) 31/12/2015 72 31/12/2016 74 31/12/2017 78 31/12/2018 83 Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%. REQUIRED: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Prepare the comparative financial…
A financial analyst is analyzing the amortization of a product patent acquired by MAKETTIS.p.A., an Italian corporation. He gathers the following information about the patent:Acquisition cost €5,800,000Acquisition date 1 January 2009Patent expiration date 31 December 2015Total plant capacity of patented product 40,000 units per yearProduction of patented product in fi scal year ended 31 December 2009 20,000 unitsExpected production of patented product during life of the patent 175,000 unitsIf the analyst uses the units-of-production method, the amortization expense on the patent for fiscal year 2009 is closest to:A. €414,286.B. €662,857.C. €828,571.
Investment Property Determine the cost of the following items of investment acquired by Sasha Corporation during 2022; Land site for capital appreciation was acquired for P8,600,000. The company paid P430,000 commission to a real estate agent. Costs of P 135,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P 65,000. The cost of investment property is _____________ Land and building were acquired to be held for under operating leases. The company made a de payment of P4,000,000, issued 20,000 P200 par ordinary shares with a market price of P240 per share, and issued a three-year non-interest-bearing note for P6,000.000 note is payable in equal annual installments of P2,000,000 at the end of each year from the date of purchase. The prevailing interest rate for similar notes is 10%. 30% of the purchase price is allocated to the land. Investment property is recorded at __________
MAP Ltd acquired a Machine from FAT Ltd for the following consideration:o Cash $65 000,o Land in the books of MAP Ltd the land is recorded at its cost of $750 000.It has a fair value of $700 000.MAP Ltd also agrees to assume the liability of the FAT Ltd bank loan of $95 000 as part ofthe Machine acquistion Calculate the acquisition cost of the Machine Provide the journal entries that would appear in MAP Ltd.’s books to accountfor the acquisition of the Machine.
You need to record the accounting entries according to US GAAP for the follwoing transactions: Peter Oil Co. was obtained shooting rights to 5,000 kilometers for $2.50 per kilometer (G&G cost).Peter Oil Co. paid $500,000 to conduct G&G studies on the area.Based on the results of G&G studeies, Peter Oil Co. acquired a lease on 620 Kilometeres to conduct detailed G&G studies at a cost of $1,500,000.Peter Co. entered into a bottom-hole contribution agreement with another company began drilling a well on a nearby property in order to obtain the G&G information from the well. the depth specified in the agreement was reached and Peter Co. paid $200,000 as per agreement (test-well contribition).Depreciation of the seismic equipement used by Peter Co. was $100,000 for the year and operating costs were $91,000.
You need to record the accounting entries according to US GAAP for the follwoing transactions: Peter Oil Co. was obtained shooting rights to 5,000 kilometers for $2.50 per kilometer (G&G cost). Peter Oil Co. paid $500,000 to conduct G&G studies on the area. Based on the results of G&G studeies, Peter Oil Co. acquired a lease on 620 Kilometeres to conduct detailed G&G studies at a cost of $1,500,000. Peter Co. entered into a bottom-hole contribution agreement with another company began drilling a well on a nearby property in order to obtain the G&G information from the well. the depth specified in the agreement was reached and Peter Co. paid $200,000 as per agreement (test-well contribition). Depreciation of the seismic equipement used by Peter Co. was $100,000 for the year and operating costs were $91,000.
Jeremiah Corporation has provided the following information on intangible assets as follows:a. A patent was purchased from Isaiah Company for P5,000,000 on January 1, 20x1. On the acquisitiondate, the patent was estimated to have a useful life of 10 years. The patent had a net book value ofP5,000,000 when Isaiah sold it to Jeremiah.b. On February 2, 20x2, a franchise was purchased from Daniel Company for P2,160,000. The contractthat runs for 20 years provides that 5%of revenue from the franchise must be paid to Daniel. Revenuefrom the franchise for 20x2 was P8,000,000.c. Jeremiah incurred the following research and development costs in 20x2:Materials and equipment P462,000Personnel 657,000Indirect costs 329,000Total P1,448,000Because of the recent events, Jeremiah, on January 1, 20x2, estimates that the remaining useful life of thepatent purchased on January 1, 20x1, is only five (5) years from January 1, 20x2.1. On December 31, 20x2, the carrying value of the patent should be…
MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years. The fair values of the property were measured as below: Date RM (in million) 31/12/2015 72 31/12/2016 74 31/12/2017 78 31/12/2018 83 Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%. REQUIRED: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Prepare the comparative…
Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $315,000. The estimated fair values of the assets are land, $60,000; building, $220,000; and equipment, $80,000. Journalize the purchase using the relative sales value method. Date Account Debit Credit MM/DD/YY 6 of 9
AA insert Construction Bhd just purchased some fixed assets that are classified as 5-year property for their asset. The proposed assets cost RM14,200, its installation costs RM700 and its shipping cost RM 320. What is the amount of the depreciation expense using the straight-line method (SLM)?
The Bronco Corporation exchanged land for equipment. The land had a book value of $138,000 and a fair value of $186,000. Bronco pald the owner of the equipment $28,000 to complete the exchange whlch has commercial substance. Required: 1. What Is the falr value of the equipment? 2. Prepere the Journal entry to record the exchange. Answer Is complete but not entirely correct. Complete thls question by entering your answers In the tabs below. Required 1 Required 2 Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Equipment - new Land - new 1 214,000 138,000 Cash 28,000 Gain on exchange of assets 48,000

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