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JAY Co.
Land
100,000.00
Cash
Date
11-Jan
1-Mar
1-May
31-Dec
Total
General Borrowing
100,000.00
Payment
110,000.00
300,000.00
540,000.00
450,000.00
1,400,000.00
Specific Borrowing:
General Borrowing:
Average Expenditures
Amount related to Specific Borrowing
Amount related to General Borrowing
Total Capitalizable Borrowing Costs
Interest Expense
Cash
Building
Interest Expense
Cash
Amount of Loan
5,000,000.00
4,000,000.00
1,600,000.00
10,600,000.00
Average Expenditure
110,000.00
250,000.00
360,000.00
720,000.00
Capitalization Rate
112,500.00
720,000.00
(750,000.00)
-
239,500.00
239,500.00
1,512,500.00
112,500.00
1,400,000.00
112,500.00
Specific Borrowing
Actual Interest Incurred
Investment Income
Total Capitalizable Borrowing
Specific Borrowing
General Borrowing
Average Expenditure
Amount related to Speci
Amount related to Gene
Capitalizable Borrowing
Total Capitalizable Borrowing
Journal Entries:
2000
Jan. 01
Dec. 31
2001
Jan. 01
Mar. 01
Jul. 01
Sept. 30
Dec. 01
Dec. 31
al Borrowing
Interest
600,000.00
520,000.00
160,000.00
1,280,000.00
lization Rate
12.08%
c Borrowing
Actual Interest Incurred
nvestment Income
Capitalizable Borrowing Costs
200,000.00
(25,000.00)
1,675,000.00
Ave. Expenditure
1,675,000.00
500,000.00
400,000.00
225,000.00
100,000.00
2,900,000.00
c Borrowing
al Borrowing
Average Expenditure
Amount related to Specific Borrowing
Amount related to General Borrowing
Capitalizable Borrowing Costs
Capitalizable Borrowing Costs
2,900,000.00
(2,000,000.00)
900,000.00
Cash
200,000.00
2,000,000.00
200,000.00
108,679.25
308,679.25
Loans Payable
CIP
175,000.00
175,000.00
2,000,000.00
1,500,000.00
Cash
Interest Expense
1,500,000.00
200,000.00
Cash
CIP
200,000.00
200,000.00
Interest Expense
Cash
200,000.00
10,600,000.00
Loans Payable
CIP
10,600,000.00
600,000.00
Cash
600,000.00
Interest Expense
Cash
300,000.00
CIP
800,000.00
300,000.00
Cash
CIP
800,000.00
900,000.00
Cash
CIP
900,000.00
1,200,000.00
Cash
Interest Expense
Cash
CIP
1,200,000.00
1,180,000.00
1,180,000.00
308,679.25
Interest Expense
Building
CIP
308,679.25
5,483,679.25
5,483,679.25
no effect
20M - Gain
5M - Gain
10M - Loss
9,000,000.00
no effect
9M - Expense
9M - Expense
9M - Expense
Kamandag Coporation
(1) Rental Expense - 2008
(2) Gain from Changes in FV
Rental Expense
Net Income
400,000.00
(10,000,000.00)
400,000.00
(9,600,000.00)
Herces, Inc.
Land
200,000.00
Revaluation Surplus
Equipment
Accumulated Depreciation
BV/SV/RS
Cost
Replacement Cost
7,000,000.00
8,333,333.33
(2,800,000.00)
(3,333,333.33)
4,200,000.00
5,000,000.00
Building
1,333,333.33
Accumulated Depreciation
Revaluation surplus
Land
1,000,000.00
Revaluation Surplus
Increase
1,333,333.33
(533,333.33)
800,000.00
400,000.00
400,000.00
Building
Accumulated Depreciation
BV/SV/RS
Revaluation Loss
Accumulated Depreciation
Building
Building
Accumulated Depreciation
BV/RS/SV
Building
Accumulated Depreciation
Revaluation Gain
1,000,000.00
200,000.00
1,200,000.00
Cost
Replacement Cost
3,000,000.00
2,444,444.44
(300,000.00)
(244,444.44)
2,700,000.00
2,200,000.00
500,000.00
55,555.56
Decrease
555,555.56
(55,555.56)
500,000.00
Revaluation Decrease and Subsequent Increase
555,555.56
Cost
Replacement Cost
2,444,444.44
2,811,111.11
(444,444.44)
(511,111.11)
2,000,000.00
2,300,000.00
366,666.67
66,666.67
300,000.00
Increase
366,666.67
(66,666.67)
300,000.00
Building
Accumulated Depreciation
BV/RS/SV
Building
Accumulated Depreciation
Revaluation Gain
Revaluation Surplus
Cost
Replacement Cost
2,444,444.44
3,422,222.22
(444,444.44)
(622,222.22)
2,000,000.00
2,800,000.00
977,777.78
177,777.78
500,000.00
300,000.00
Increase
977,777.78
(177,777.78)
800,000.00
Hyuncy Company
Building
Accumulated Depreciation
BV/SV/RS
Building
Accumulated Depreciation
Revaluation Surplus
10,500,000.00
Depreciation Expense
Accumulated Depreciation
1,531,250.00
t Impairment
ubsequent Increase
Cost
Replacement Cost
15,750,000.00
26,250,000.00
(4,725,000.00)
(7,875,000.00)
11,025,000.00
18,375,000.00
Building
Residual Value
Depreciable Cost
Accumulated Depreciation
BV/SV/RS
Increase
10,500,000.00
(3,150,000.00)
7,350,000.00
3,150,000.00
7,350,000.00
1,531,250.00
Cost
Replacement Cost
15,750,000.00
26,250,000.00
(700,000.00)
(700,000.00)
15,050,000.00
25,550,000.00
(4,780,588.24)
(8,115,882.35)
10,269,411.76
17,434,117.65
Building
Accumulated Depreciation
Revaluation Surplus
10,500,000.00
Depreciation Expense
Accumulated Depreciation
1,452,843.14
3,335,294.12
7,164,705.88
1,452,843.14
Increase
10,500,000.00
10,500,000.00
(3,335,294.12)
7,164,705.88
Hyun Corp.
Fair Value Less Costs to Sell
24,800,000.00
Value in Use:
Net Cash Flows
11,200,000.00
9,600,000.00
7,200,000.00
3,200,000.00
31,200,000.00
PV Factor
0.90909
0.82645
0.75131
0.68301
Recoverable Amount
Carrying Amount
Impairment Loss
25,710,812.10
32,000,000.00
6,289,187.90
Depreciation - 2005
2,571,081.21
Equipment @ Cost
Accumulated Depreciation
Accumulated Impairment
Carrying Value - 12/31/2005
CV - 12/31/2005
Depreciation
CV - 12/31/2006
48,000,000.00
(18,571,081.21)
(6,289,187.90)
23,139,730.89
23,139,730.89
(2,571,081.21)
20,568,649.68
10,181,818.18
7,933,884.30
5,409,466.57
2,185,643.06
25,710,812.10
Equipment
Accumulated Depreciation
Depreciation 2005 & 2006
CV - 12/31/2006
CV with Impairment
Recoverable Amount
Reversal of Impairment Loss
Dec. 31, 2006 FV less Costs to Sell
Value in Use
CV without Impairment
CV with Impairment
Reversal of Impairment Loss
24,000,000.00
23,500,000.00
48,000,000.00
(16,000,000.00)
(6,400,000.00)
25,600,000.00
20,568,649.68
24,000,000.00
3,431,350.32
26,000,000.00
25,500,000.00
25,600,000.00
20,568,649.68
5,031,350.32