A cash-generating unit comprises the following assets:
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- A cash-generating unit comprises the following assets: £000 Goodwill 220 Land 1,280 Plant and equipment 400 1,900 One of the pieces of equipment, carried at £80,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £1,500,000. What will be the carrying amount of the land after the impairment loss has been recognised? Select one: a. £1,200,000 b. £1,142,858 c. £1,010,526 d. £1,055,736 e. £300,000The carrying value of your cash-generating unit: Assets OMR 10m + Goodwill OMR 3m and Its recoverable amount is $11m You should: O a. Reduce the goodwill to $1m. O b. Do nothing. O . Reduce the goodwill to nil. O d. Reduce the assets to OMR 8m.A cash-generating unit comprises the following assets: £000 Goodwill : 440 Land : 2,560 Plant and equipment : 800 3,800 One of the pieces of equipment, carried at £160,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £3,000,000 What will be the carrying amount of the land after the impairment loss has been recognised? Select one: a) £2,400,000 b) £2,285,176 c)£2,021,052 d)£2,111,472 e)£300,000
- A cash-generating unit comprises the following assets: £000 Goodwill 440 Land 2,560 Plant and equipment 800 3,800 One of the pieces of equipment, carried at £160,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £3,000,000. What will be the carrying amount of the land after the impairment loss has been recognised? a. £2,111,472 b. £2,285,716 c. £2,021,052 d. £2,400,000 e. £300,000The company provided the data of PP&E in a cash-generating unit (CGU) as follows: Cost Accumulated Depreciation Equipment A $ 15,000 $ 8,000 Equipment B 30,000 19,000 Equipment C 45,000 23,000 The unit’s fair value less costs to sell was $25,000. The unit’s future cash flows was $32,000, and its present value was $28,000. The company adopted IFRS. Prepare journal entries to record impairment. If the recoverable amount of Equipment C is $19,000, prepare journal entries to record impairment. If the recoverable amount of Equipment C is $24,000, prepare journal entries to record impairment.Q15. For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine A B First Cost, $ -13,000 –25,000 AOC, $ per Year -1,300 –400 Salvage Value, $ 5,000 6,000 Life, Years 3 6 a) The incremental cash flow between machines B and A in year 0 is $ . b) The incremental cash flow between machines B and A in year 3 is $ . c) The incremental cash flow between machines B and A in year 6 is $ .
- PROBLEM:Fluffy Company's division one is a cash generating unit. The company has determined the recoverable value of division one to be P440,000. Moreover, the company has also determined the following for its building:Value in use P240,000Fair value less cost of disposal 260,000The carrying amounts of division one's assets are as follows:Inventory P160,000Building 320,000Equipment 160,000Goodwill 10,000 How much impairment loss was allocated to the inventory?* 1 punto 70,000 50,000 52,500 75,000 How much impairment loss was allocated to the building? * 1 punto 100,000 105,000 80,000 60,000 How much is the impairment loss of division one?* 1 punto 200,000 210,000 150,000 130,000 Assume the…INSTIGATE PROVOKE Co. determined that one of its cash-generating units is impaired. Information on the assets of the CGU is shown below: Assets Carrying amount Inventory 800,000 Investment property (at cost model) 1,600,000 Building 2,400,000 Goodwill 1,200,000 6,000,000 It was estimated that the value in use of the CGU is ₱3,600,000 and its fair value less costs of disposal is ₱2,400,000. How much is the impairment loss? a. 4,200,000 b. 3,200,000 c. 2,400,000 d. 2,000,000 2.How much is the carrying amount of the building after the impairment testing? a. 1,680,000 b. 1,120,000 c. 1,860,000 d. 2,040,0006.30 For the alternatives shown, determine the sum of the cash flows in the Z-X difference column. First cost, $ Annual operating cost, $/year Salvage value, $ Life, years System X -40,000 - 12,000 6,000 3 System Z -95,000 -5,000 14,000 6
- A machine with a cost of $146,000, accumulated depreciation of $93,000, and current year depreciation expense of $21,000 is sold for $46,400 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: Multiple Choice $46,600. $6,600. $21,000.[The following information applies to the questions displayed below.] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 3% return from its investments. Initial investment Net cash flows: $ (220,000) Year 1 160,000 128,000 125,000 Year 2 Year 3 QS 11-19 (Algo) Net present value with unequal cash flows LO P3 Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Net Cash Flow Present Value Present Value of Net Factor Cash Flows Year 1 Year 2 Year 3 Totals Initial investment Net present valueABC is testing a store branch for impairment. The assets of thebranch include a building with a carrying amount of P4,000,000,equipment of P3,000,000, inventory of P2,000,000 and goodwill ofP500,000. The fair value less cost to dispose of the inventory is P2,500,000.The expected cashflows from the branch are: Year Amount1 P 2,000,0002 1,700,0003 1,500,0004 1,500,0005 1,300,000 The effective interest rate is 9%. The present value of the cashflowsbeyond year 5 is estimated to be at P400,000. 10. Value in use of the store branch11. Total Impairment Loss12. Carrying value of the building after impairment13. Carrying value of the inventory after impairment14. Carrying value of the goodwill after impairment