4 repeat requirement 1 assuming that the estimated

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4. Repeat requirement 1 assuming that the estimated undiscounted sum of future cash flows is $27,000,000 instead of $30,000,000. 5. Repeat requirement 1 assuming that the estimated undiscounted sum of future cash flows is $34,000,000 instead of $30,000,000.
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130. In 2011, Quasar Ltd. acquired all of the common stock of Penlight Laser for $124 million. The fair value of Penlight's identifiable tangible and intangible assets totaled $205 million, and the fair value of liabilities assumed by Quasar was $95 million. Quasar performed a required goodwill impairment test at the end of its fiscal year ended December 31, 2013. Management has provided the following information: Required: 1. Determine the amount of goodwill that resulted from the Penlight acquisition. 2. Determine the amount of goodwill impairment loss that Quasar should recognize at the end of 2013, if any. 3. If an impairment loss is required, prepare the journal entry to record the loss.
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131. Atlas Trucking incurred the following costs during 2013: 1. Spent $15,000 on a major overhaul for a tractor-trailer rig. The overhaul is expected to increase the service life of the rig by three years. 2. Repaired the air-conditioning system for $3,000. 3. Rearranged and reconfigured the maintenance, loading, and unloading facilities at a cost of $75,000. The rearrangement is expected to result in substantial cost savings and increased efficiency over the next several years. Required: Prepare journal entries to record the above costs.
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132. On March 30, 2013, Calvin Exploration purchased a drilling machine for $840,000. The estimated useful life of the machine is 10 years and no residual value is anticipated. An important component of the machine is the drill housing component that will need to be replaced in five years. The $200,000 cost of the drill housing component is included in the $840,000 cost of the machine. Calvin uses the straight-line depreciation method for all machinery. The company's fiscal year ends on December 31. Required: 1. Calculate depreciation on the drilling machine for 2013 and 2014 applying the typical U.S. GAAP treatment. 2. Repeat requirement 1 applying IFRS.
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133. Synthetic Fuels Corporation prepares its financial statements according to IFRS. On June 30, 2013, the company purchased equipment for $350,000. The equipment is expected to have a seven-year useful life with no residual value. Synthetic uses the straight-line depreciation method for all depreciable assets. On December 31, 2013, the end of the company's fiscal year, Synthetic chooses to revalue the machinery to its fair value of $299,000. Required: 1. Calculate depreciation for 2013. 2. Prepare the journal entry at the end of 2013 to record the revaluation of the equipment. 3. Calculate depreciation for 2014. 4. Repeat requirement 2 assuming that the fair value of the equipment at the end of 2013 is $338,000.
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134. Smithson Ltd. prepares its financial statements according to IFRS. On March 30, 2013, the company purchased a franchise for $3,000,000. The franchise has a 10-year contractual life with no residual value. Smithson uses the straight-line amortization method for all intangible assets.
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