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Tut FA

The document records accounting entries for impairment losses and recoveries of non-financial assets over multiple years. It shows an initial impairment loss of $1 million in 2016, with corresponding depreciation expense of $1.75 million. In 2016, $750,000 of the impairment loss was recovered against the depreciation expense. Useful life and depreciation amounts are provided to calculate future carrying amounts.

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15 views12 pages

Tut FA

The document records accounting entries for impairment losses and recoveries of non-financial assets over multiple years. It shows an initial impairment loss of $1 million in 2016, with corresponding depreciation expense of $1.75 million. In 2016, $750,000 of the impairment loss was recovered against the depreciation expense. Useful life and depreciation amounts are provided to calculate future carrying amounts.

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Hiền Nguyễn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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a)

31-Dec Loss on Impairment 1,000,000


AD 1,000,000
b)
2016 Depreciation Expense 1,750,000
AD 1,750,000
c)
2016 AD 750,000
Recovery of Impairment Loss 750,000
Value-in-use 7,000,000
Carrying amount : 8,000,000

New carrying amount 7,000,000


Useful life 4 years
Depreciation per year 1,750,000

Carrying amount in 2016 5,250,000


Recoverable 6,000,000
a)
Loss on Impairment 200,000 Carrying amount
AD 200,000 Value in use
Loss on Impairment
b) It should be reported in the other income and expense
c)
AD 45,000 New carrying amount
Recovery of Impairment Loss 45,000 Useful life
Depreciation per year

Carrying amount in 2016


Recoverable
500,000
300,000
200,000

300,000
4 years
75,000

225,000
270,000
2015 Land 20,000
Unrealized Gain on Revaluation—Land 20,000

2016 Unrealized Gain on Revaluation—Land 20,000


Loss on Impairment 20,000
Land 40,000
2017 Land 25,000
Recovery of Impairment Loss 20,000
Unrealized Gain on Revaluation—Land 5,000
2013 Land 50,000
Unrealized Gain on Revaluation—Land 50,000
2014 Unrealized Gain on Revaluation—Land 50,000
Loss on Impairment 40,000
Land 90,000
2015 Land 25,000
Recovery of Impairment Loss 25,000
2016 Land 25,000
Recovery of Impairment Loss 15,000
Unrealized Gain on Revaluation—Land 10,000
2017 Land 50,000
Unrealized Gain on Revaluation—Land 50,000

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