Bao Inc.owns a machine with a carrying value of $3.0 million and a salvage value of $

2.0 million.The present value of the machine’s future cash flows is $1.7 million.The asset is permanently impaired.Bao should (under IFRS):

A.immediately write down the machine to its salvage value.

B.immediately write down the machine to its recoverable amount.

C.write down the machine to its recoverable amount as soon as it is depreciated down to salvage value.

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更多“Bao Inc.owns a machine with a …”相关的问题

第1题

Under U.S.GAAP, an asset is considered impaired if its book value is:

A.less than its market value.

B.greater than the present value of its expected future cash flows.

C.greater than the sum of its undiscounted expected cash flows.

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第2题

A manufacturing firm shuts down production at one of its plants and offers the facility for rent.Based on the market for similar properties, the firm determines that the fair value of the plant is €500,000 more than its original cost.If this firm uses the cost model for plant and equipment and the fair value model for investment property, should it recognize a gain on its income statement under IFRS?

A.Yes, because the plant will be reclassified as investment property.

B.No, because the increase in value does not reverse a previously recognized loss.

C.No, because the firm must continue to use the cost model for valuation of this asset.

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第3题

In the early years of an asset’s life, a firm that chooses an accelerated depreciation method instead of using straight-line depreciation will tend to have:

A.lower net income and lower equity.

B.higher return on equity and higher return on assets.

C.lower depreciation expense and lower turnover ratios.

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第4题

Which of the following statement about expenses and intangible assets is least accurate?

A.advertising fees are generally expensed as incurred.

B.In most countries, research and development costs are capitalized.

C.Intangible assets are initially entered on the balance sheet at their purchase prices when they are acquired from an outside entity.

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