Beruflich Dokumente
Kultur Dokumente
Machinery 5M
Accumulated Depreciation (2M)
Carrying amount 3M
JOURNAL ENTRIES
Impairment loss 600,000
Accumulated Depreciation 600,000
SOLUTION
CARRYING AMOUNT 3,000,000
RECOVERABLE AMOUNT 2,400,000
IMPAIRMENT LOSS 600,000
Machinery 8M
Accumulated Depreciation ( 10 year life, 2 yrs expired) 1.6M
CARRYING AMOUNT 6.4 M
On the same date, the recoverable amount of the machinery is determined to be the fair value less cost
of disposal of 5,200,000.
JOURNAL ENTRIES
Impairment loss 1 200 000
Accumulated Depreciation 1,200,000
(6 400 000 - 5 200 000)
On December 31, 2020, the recoverable amount of the machinery is determined to be 6 000 00
indicating a reversal in the impairment.
JOURNAL ENTRIES
Depreciation 650,000
Accumulated Depreciation 650 000