Ramshare Company acquired equipment at the beginning of 2013 at a cost of $100,000. The equipment has a five-year life with no expected and is depreciated on a straight line basis. At December 31, 2013, Ramshare compiled the following information related to this equipment:
Expected future cash flows from use of the equipment …………………………………. $85,000
Present value of expected future cash flows from use of the equipment …………………. 75,000
Fair value (net selling price), less costs to dispose ………………………………………… 72,000
a. Determine the amount at which Ramshare should carry this equipment on its December 31, 2013, and the amount, if any, that it should report in net income related to this inventory using (1) U.S. and (2) IFRS.
b. Determine the adjustments that Ramshare would make in 2013 and 2014 to reconcile net income and stockholders’ equity under U.S. to IFRS. Ignore the possibility of any additional impairment at the end of 2012?
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com