Credit accumulated depreciation $60,000 b. Also known as historical cost, a common term in . B. a. the original cost of the equipment exceeds its fair value and is deemed not recoverable b. management determines that the equipment will no longer be used. c. the carrying amount of the equipment exceeds its fair value and is deemed not recoverable. Accounting. Solved 2. Lecherous Company traded a used equipment for a ... Historical cost is the original price spent to acquire the asset. Operating costs of the old equipment. Which is the asset: original cost of equipment and fair value of equipment? The new asset received had a fair value of $80,000 and a book value of $65,000. How much is the carrying value of the equipment on December 31, 2021? Which is the asset: original cost of equipment and fair ... In equipment-replacement decisions, which one of the following does not affect the decision-making process? Lecherous Company traded a used equipment for a newer model with a dealer. Where the . Operating costs of the old equipment. original cost of equipment and fair value of equipment. Depreciation. Carrying amount as at December 31, 2012 is $190,000 minus 2 years depreciation of $22,352 which amounts to $167,648. What Is Fair Value? - Equipment Appraisal On December 31, 2005, Vey Co. traded equipment with an original cost of $100,000 and accumulated depreciation of $40,000 for productive equipment with a fair value of $60,000. Jo son paid of ,000 as part of the trade. Under "fair value" accounting, if the asset gains or loses value during the income-statement period, you treat that as positive or negative income. After two years, the fair value of the equipment is $82,000. )Shellfish Company determined that, due to the obsolescence, equipment with an original cost of P180,000 and accumulated depreciation at January 1, 2020 of P84,000 had suffered permanent impairment, and as a result should have fair value of only P60,000 as of the beginning of the year. The book value and fair value of the equipment were $20,000 (original cost of $65,000 less accumulated depreciation of $45,000) and $17,000, respectively. original cost of equipment and fair value of equipment Required: Record the exchange for both Robers . Answered: Lecherous Company traded a used… | bartleby The equipment was depreciated using the straight-line method with annual depreciation of $20,000. Historical cost is the original price spent to acquire the asset. Fair value is determined by using a solid methodology that is unbiased and is based on rational processes of determining the value. Fair value is the price at which the asset can be sold in the market. Summary of IAS/Ind AS 16 - Property, Plant & Equipment Explanation: 404. If the equipment's disposition resulted in a reported loss, which of the following depreciation methods did Crater use? On this date the property was revalued and was deemed to have a fair value of $95,000. ? The book value and fair value of the equipment were $20,000 (original . An economic condition in which there are so few suppliers of . The term that refers to costs incurred in the past that are not relevant to a future decision is . a. Carrying amount of CGU 13,000, Value in use 8,500, Impairment loss 4,500, Impairment loss allocated to goodwill 1,000, Remaining impairment loss 3,500, Carrying amount Fraction Loss Land 2,500,000 25/100 875, Plant and equipment 7,500,000 75/100 2,625, 10,000,000 3,500, No impairment loss is allocated to inventory because the fair value less cost of disposal of inventory is higher than . MGMT 200 - Chapter 7 Flashcards | Quizlet Difference Between Historical Cost and Fair Value ... ____ is the loss of value of the equipment with use over a period of time. c. the carrying amount of the equipment exceeds its fair value and is deemed not recoverable. Fair value is also known as intrinsic value, actuarial value, market price, etc. In case of plant & equipment, fair value is usually market value. Fair value is not always the same as market value, depending on conditions at . On December 31, 2005, Vey Co. traded equipment with an original cost of $100,000 and accumulated depreciation of $40,000 for productive equipment with a fair value of $60,000. PDF U.S. GAAP vs. IFRS: Property, plant and equipment and ... Old equipment: Original cost Accumulated depreciation Fair value -unknown 1,000,000 600,000 New equipment: List price Cash price without trade in Cash payment with trade in 1,600,000 1,400,000 980,000 Required: Prepare journal entry to record the exchange transaction. investment property at fair value, with changes in fair value recognized in the income statement. In equipment-replacement decisions, which one of the ... by // July 27, 2021 // No Comments . The new asset is recorded at $400,000, the fair value of the old equipment, $300,000, plus the cash given, $100,000. The journal entry to record this exchange will include which of the following entries? Property, Plant, and Equipment or fixed assets or tangible assets are the company's . Transactions 1 to 5 . A. Assume the exchange has commercial substance. The original cost of the old equipment was $100,000, and its accumulated depreciation at the date of exchange was $60,000. Historical Cost vs Fair Value. The original cost of a piece of equipment was $100,000. Example of Historical Cost and Fair Value. c. Using the information below, calculate the average total depreciable life . Asset Value. Old equipment: Original cost Accumulated depreciation Fair value -unknown 1,000,000 600,000 New equipment: List price Cash price without trade in Cash payment with trade in 1,600,000 1,400,000 980,000 Required: Prepare journal entry to record the exchange transaction. In addition, Vey received $30,000 cash in connection with this exchange. Delivery truck 2. Cr Non-current asset cost [difference between valuation and original cost/valuation] EXAMPLE 8 The carrying amount of Zen Co's property at the end of the year amounted to $108,000 (cost/value $125,000 and accumulated depreciation $17,000).

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