(Answered) In 2010 bethesda company purchased a coal mine for 30000000

Accounting

In 2010 Bethesda Company purchased a coal mine for $30,000,000. Bethesda expected to be able to extract $100,000,000 worth of coal from the mine. By 2016 Bethesda had extracted 10% of the coal from the mine. During 2016, a new pollution law was passed which greatly impacted the Bethesda Company. With this new law, Bethesda Company expects to be able to only get $28,000,000 (present value $11,000,000) for their remaining coal.

Under GAAP is this asset impaired? What value should Bethesda show this asset at?

Under IFRS is this asset impaired? What value should Bethesda show this asset at?

In 2018, The Vault Company developed a new coal filter which removes 100% of the pollution from burning coal! With this new invention

Bethesda Company is convinced that it can sell its remaining coal for $95,000,000.

Under GAAP at what value does Bethesda Company show for the coal mine on its balance sheet?

Under IFRS at what value dues Bethesda Company show for the coal mine on its balance sheet?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92555247
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - speedy delivery company purchases a delivery van

Question - Speedy Delivery Company purchases a delivery van for $43,200. Speedy estimates that at the end of its four-year service life, the van will be worth $6,800. During the four-year period, the company expects to d ...

Question - on june 15 richwood township decided to withdraw

Question - On June 15, Richwood Township decided to withdraw $3,035,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $32,500. Assume that the trust ...

Question - you want to borrow 67000 from your local bank to

Question - You want to borrow $67,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,300, but no more. Required: Assuming monthly compounding, what is the highest rate you can a ...

Question the records of hetrick company and frear

Question: The records of Hetrick Company and Frear Corporation show the following information. Prepare journal entries, if required, to adjust the books of Hetrick Company or Frear Corporation, as noted. The fiscal year ...

Question - during october a firm had the following

Question - During October a firm had the following transactions involving revenue and expense: Paid $1325 for rent October Provided services foe $3000 in cash Paid 300 for October phone service Provided service for 2150 ...

Question - bob smith borrowed 200000 on january 1 2015 the

Question - Bob Smith borrowed $200,000 on January 1, 2015. The interest rate of 8% is compounded semiannually to be repaid January 1, 2025. To repay this Bob wants to start making five equal annual deposits into fund tha ...

Question - flounder company at december 31 2017 the end of

Question - Flounder Company at December 31, 2017, the end of its first year of operations. Sales revenue $282,670 Cost of goods sold 147,300 Selling and administrative expenses 49,900 Gain on sale of plant assets 28,660 ...

Question - the following are reported amounts from ellis

Question - The following are reported amounts from Ellis Company's multiple-step income statement: Cost of merchandise sold $199,840 Merchandise inventory 139,890 Sales 307,750 Sales discounts 5,850 Sales returns 11,690 ...

Question - as the senior accountant you had just prepared

Question - As the senior accountant you had just prepared & posted the journal entry that closed the revenue accounts to the income summary account. Suddenly you noticed that your bookkeeper made a tragic error in record ...

Qestion - the houston mavericks basketball team receives

Question - The Houston Mavericks basketball team receives $ 6500 for season tickets on August 1. By December 31, $ 3900 of the revenue has been earned. The adjusting entry to be made on December 31 includes a: A. credit ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert