t88 - Chapter 10 - Problems 8 Atropos Company The carrying...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10 - Problems 8 Atropos Company The carrying amount of the asset in the absence of any impairment losses would be as follows: Cost Accumulated Carrying depreciation amount 30 June 2005 $1 200 000 $100 000 $1 100 000 30 June 2006 1 200 000 200 000 1 000 000 30 June 2007 1 200 000 300 000 900 000 30 June 2008 1 200 000 400 000 800 000 1 July 2004 – Acquisition of the asset _________________________________________________________________ Asset Dr $1 200 000 Cash at bank Cr $1 200 000 _________________________________________________________________ 30 June 2005 – Recognising depreciation _________________________________________________________________ Depreciation expense Dr $100 000 Accumulated depreciation Cr $100 000 ($1 200 000/12 years = $100 000 p.a.) _________________________________________________________________ – Recognise asset impairment ± Indicators of impairment are present ± Recoverable amount has already been estimated ± Comparison of carrying amount of $1 100 000 ($1 200 000 $100 000) and recoverable amount ($1 000 000) reveals that there is an impairment loss ($100 000) to be recognised _________________________________________________________________ Accumulated depreciation
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/07/2009 for the course ACCT 3102 taught by Professor Drk.herbohn during the Three '09 term at Queensland.

Page1 / 3

t88 - Chapter 10 - Problems 8 Atropos Company The carrying...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online