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(Solved): Problem Solving - Cost Model, Revaluation model, Impairment of asset and Revaluation of asset.Solve ...
Problem Solving - Cost Model, Revaluation model, Impairment of asset and Revaluation of asset.
Solve the questions number 1 to 6, assuming that the company’s policy is to account for assets under cost model.
And Solve questions number 7 to 13, assuming that the company’s policy is to account for asset under revaluation model.
Chapter 5: Audit of Fixed Assets Case 9 - Cost Model, Revaluation model, Impairment of asset and Revaluation of asset On January 2, 2020, Theseus Company purchased machinery from Zethus r *The assessment by the city government is due to poor planning and noncompliance with the govermment's installation process of the machinery in the area. The management estimates that the machinery will be used for a period of ten years with no residual value. At the end of 2020 , the following information is made available: a. The asset can be sold for with cost to be incurred of to disposed the asset. b. The net cash flows expected for the asset with its continuing use is per year. c. Discount rate applicable is . At the end of 2021, the management estimates the following information: a. The net realizable value of the asset on this date is with P40,000 disposal cost. b. The value in use is based on the annual cash flows of P205,000 at discount rate.