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Practice Problem No. 10 - Revaluation, Impairment, and Noncurrent Asset Held For Sale

The document outlines financial calculations related to asset depreciation and impairment for machinery and real estate. It details the machine's cost, accumulated depreciation, fair value, and value in use, resulting in an impairment loss. Additionally, it presents revaluation and depreciation for land, buildings, and machinery, including a revaluation surplus and total depreciation for the year 2020.

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marcalegarbes7
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13 views3 pages

Practice Problem No. 10 - Revaluation, Impairment, and Noncurrent Asset Held For Sale

The document outlines financial calculations related to asset depreciation and impairment for machinery and real estate. It details the machine's cost, accumulated depreciation, fair value, and value in use, resulting in an impairment loss. Additionally, it presents revaluation and depreciation for land, buildings, and machinery, including a revaluation surplus and total depreciation for the year 2020.

Uploaded by

marcalegarbes7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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problem 1

ALEGARBES,MARC ELIEZAR Q.

MACHINE COST 250,000


INTEREST 10%
TOTAL 25,000
MULTIPLY BY 2 YEARS 2
ACCUMULATED DEPRECIATION 50,000

CARRY VALUE (250,000-50,000) 200,000


FAIR VALUE 154,000
COST OD DISPOSAL -2,000
TOTAL 152,000

VALUE IN USE
YEAR 1 80,000 0.9259 74,072
YEAR 2 60,000 0.8573 51,438
YEAR 3 50,000 0.7938 39,690
YEAR 4 40,000 0.735 29,400
VALUE IN USE TOTAL 194,600

CARRYING VALUE 200,000


RECORABLE AMOUNT 194,600
IMPAIRMENT OF LOSS 5,400

debit credit
2022 depreciation machine 54,000
impairment of losses 54,000
PROBLEM 2

land 5,000,000
building 25,000,000
machinery 5,000,000

building 3,750,000/1,500,000 25%


machinery 1,500,000/3,000,000 50%

land 5,000,000 2,000,000


building 18,750,000 11,250,000
machinery 2,500,000 1,500,000
revaluation surplus

revaluation surplus jan 1 2020 11,500,000


building(7,500,000/21yrs) 357,142.86
machinery(1,000,000/7yrs) 142,857.14 -500,000
revaluation surplus dec 31 1 2020 11,000,000

depreciation 2020
building (18,750,000/21yrs) 892,857.14
machinery(2,500,000/7yrs) 357,142.86
total depreciation in 2020 1,250,000.00
land 2,000,000
building 15,000,000
accumulated depreciation 3,750,000
machinery 3,000,000
accumulated depreciation 1,500,000

7divide 25% 28
7divide 50% 14

3,000,000
7,500,000
1,000,000
11,500,000

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