Exam 10: Applications of Fair Value to Non-Current Assets

Smith Inc wishes to use the revaluation model for this property: The fair value for the property is $150,000.Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years,how much would be booked to accumulated depreciation in the year subsequent to the revaluation?

Which of the following is correct with respect to the "fair value model"?

Which statement describes the "historical cost model"?

How is an impairment loss allocated to the non-current asset(s)?

Based on the following information,what is the net book value of the asset on the December 31,2018 balance sheet?

Which of the following is correct with respect to "investment properties"?

Based on the following information,what is the impairment amount to be recorded?

Which statement is not correct?

What impairment,if any,exists on these product lines?

Which of the following is correct with respect to the accounting for "investment properties"?

Sigma Company has a piece of equipment with an original cost of $1,440,000.The equipment's carrying value at the beginning of this year (net of accumulated depreciation)was $1,080,000.Sigma recorded $120,000 for depreciation for this year.The equipment's fair value at the end of the year was $1,056,000.This is the first year that the company has revalued this equipment. Required: a.Record the journal entry for the revaluation adjustment assuming that Sigma uses the elimination method. b.Record the journal entry for the revaluation adjustment assuming that Sigma uses the proportional method.

Grover Inc wishes to use the revaluation model for this property: The fair value for the property is $100,000.What amount would be booked to the "accumulated depreciation" account if Grover chooses to use the elimination method to record the revaluation?

Grover Inc wishes to use the revaluation model for this property: The fair value for the property is $140,000.Assuming this is the first year of using the revaluation model,what amount would be booked to profit and loss if Grover chooses to use the elimination method to record the revaluation?

What information is not necessary about discontinued operations in the statement of comprehensive income or in the notes?

Which statement is not correct?

Which statement is correct?

Wilson Inc wishes to use the revaluation model for this property: The fair value for the property is $140,000.Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years,how much depreciation expense would be recorded in the year subsequent to the revaluation?

Based on the following information,what is the net amount that this equipment should be reported at on BAC's balance sheet at December 31,2018?

Explain how non-current assets such as definite lived intangibles,indefinite lived intangibles and goodwill are tested for impairment under IFRS.

Which of the following is correct with respect to the "fair value model"?