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

Accounting

In 2010 Gandalf Company purchased a coal mine for $30,000,000. Gandalf expected to be able to extract $100,000,000 worth of coal from the mine. By 2016 Gandalf had extracted 10% of the coal from the mine. During 2016, a new pollution law was passed which greatly impacted the Gandalf Company. With this new law, Gandalf 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 Gandalf show this asset at?

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

In 2018, The Frodo Company developed a new coal filter which removes 100% of the pollution from burning coal! With this new invention Gandalf Company is convinced that it can sell its remaining coal for $95,000,000.

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

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

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