Chapter 7 - 1

Disclosure
Sales
Cost of goods sold
Gross income 2,200,000
Expenses (2,900,000)
Impairment loss (200,000)
Employee termination costs (100,000)
Income before tax (1,000,000)
Income tax
Income from discontinued operation
Fair value less cost of disposal 1,800,000
Carrying amount of net assets (2,000,000)
Impairment loss (200,000)
Chapter 7 - 2
Disclosure
Sales
Cost of goods sold
Gross income 3,000,000
Expenses
Impairment loss (500,000)
Employee termination costs
Income before tax 2,500,000
Income tax (750,000)
Income from discontinued operation 1,750,000
Fair value less cost of disposal 3,500,000
Carrying amount of net assets (4,000,000)
Impairment loss (500,000)
Chapter 7 - 3
Disclosure
Sales
Cost of goods sold
Gross income
Expenses
Impairment loss -
Employee termination costs
Income before tax (2,000,000)
Income tax
Income from discontinued operation (2,000,000)
Fair value less cost of disposal
Carrying amount of net assets
Impairment loss -
Chapter 7 - 4
Disclosure
Sales
Cost of goods sold
Gross income 40,000,000
Expenses (45,000,000)
Impairment loss (10,000,000)
Employee termination costs (5,000,000)
Income before tax (20,000,000)
Income tax
Income from discontinued operation (20,000,000)
Fair value less cost of disposal (70,000,000)
Carrying amount of net assets 60,000,000
Impairment loss (10,000,000)
Chapter 7 - 5
Disclosure
Sales 23,000
Cost of goods sold (14,000)
Gross income 9,000
Expenses (17,000)
Gain 15,000
Employee termination costs
Income before tax 7,000
Income tax (2,100)
Income from discontinued operation 4,900
Fair value less cost of disposal
Carrying amount of net assets
Impairment loss -
Chapter 8 - 1

6,000,000 Accumulated years 3

0.5 Useful years 6
3,000,000 0.5
 6,000,000 Accumulated years 1 3,000,000
(3,000,000) Useful years 5 0.2
3,000,000 0.2 600,000
3,000,000
(600,000)
2,400,000
Chapter 8 - 2

Building
15,000,000 Accumulated years 3
0.2 Useful years 15
3,000,000 0.2

Machinery
10,500,000 Accumulated years 3
0.3 Useful years 10
3,150,000 0.3

Machinery
3,500,000 Accumulated years 3
0.428571428571 Useful years 7
1,500,000 0.428571
15,000,000 Accumulated years 1 12,000,000
(3,000,000) Useful years 10 0.1
12,000,000 0.1 1,200,000

10,500,000 Accumulated years 1 7,350,000

(3,150,000) Useful years 7 0.142857142857
7,350,000 0.142857 1,050,000

3,500,000 Accumulated years 1 2,000,000

(1,500,000) Useful years 5 0.2
2,000,000 0.2 400,000

2,650,000
12,000,000
(1,200,000)
10,800,000

7,350,000
(1,050,000)
6,300,000

2,000,000
(400,000)
1,600,000
Chapter 8 - 3

2,640,000 Accumulated years 3

0.375 Useful years 8
990,000 0.375
2,640,000 Accumulated years 1 1,650,000
(990,000) Useful years 3 (240,000)
1,650,000 0.333 1,410,000
 1,410,000 1,650,000
0.333333333333 (470,000)
470,000 1,180,000

1,460,000
Chapter 8 - 3

3,600,000 Accumulated years 4

0.4 Useful years 10
1,440,000 0.4

4,000,000
(400,000)
3,600,000
 4,000,000 Accumulated years 1 2,560,000
(1,440,000) Useful years 8 (480,000)
2,560,000 0.125 2,080,000
2,080,000 2,560,000
0.125 (260,000)
260,000 2,300,000
Chapter 8 - 3

3,000,000 Accumulated years 3

0.5 Useful years 6
1,500,000 0.5
 3,000,000 Accumulated years 1 1,500,000
(1,500,000) Useful years 2 (100,000)
1,500,000 0.500 1,400,000
1,400,000 1,500,000
0.5 (700,000)
700,000 800,000
Chapter 9 - 1

Inventory Jan 1 600,000

Retained Earnings 600,000
Chapter 9 - 2

7,200,000
7,700,000
500,000
Chapter 9 - 3

8,300,000
7,800,000
(500,000)
Chapter 9 - 4

7,000,000 9,000,000 2,000,000 Income Summary

0.3 0.3 (600,000)
2,100,000 2,700,000 1,400,000
Income Summary 1,400,000
Retained Earnings 1,400,000
Chapter 9 - 5

2,000,000
6,000,000
(1,000,000)
7,000,000
(2,000,000)
5,000,000
(12,000,000)
(7,000,000)