Current carrying value-impaired assets

Assignment Help Accounting Basics
Reference no: EM13256709

For several years, a number of Food Lion,Inc., grocery stores were unprofitable. The company closed, and continues to close, some of these locations. It is apparent that the company will not be able to recover the cost of the assets associated with the closed stores. Thus, the current value of these impaired assets must be written down.

A recent Food Lion income statement reports a$9.5 million charge against income pertaining to the write-down of impaired assets.

A. Explain why Food Lion must write down the current carrying value of its unprofitable stores.

B. Explain why the recent $9.5 million charge to write down these impaired assets is considered a noncash expense

Reference no: EM13256709

Questions Cloud

Define temperature the vapor pressure of water : Imagine a solution at 25 oC which contain 25.0 mL of ethanol (d = 0.800 g/mL) and 40.0g of water (d =1.00 g/mL). At this temperature the vapor pressure of water is 23.8 Torr and that of ethanol is 60.8 Torr.
Permanent endowment for scholarships : An alumnus of a small university donated $150,000 to establish a permanent endowment for scholarships. The first scholarships were awarded 5 years after the money was donated.
The body of knowledge for the profession : Why do all managers and supervisors need to have knowledge and skills related to Human Resource management?
Calculate the cost of leasing the equipment : Reynolds Corporation plans to purchase equipment at a cost of $3 million. The company's tax-rate is 30 percent and the equipment's depreciation would be $600,000 per year for 5 years.
Current carrying value-impaired assets : For several years, a number of Food Lion,Inc., grocery stores were unprofitable. The company closed, and continues to close, some of these locations.
Describe how to improve productivity : Describe how to improve productivity in non-hospital organizations e.g. American Heart Association, Lupus Foundation, Alzheimer’s Association.
What strategies could management employ to hedge : What strategies could management employ to hedge against this risk by buying or selling futures, call options or put options (i.e., for each derivative is it a buy or sell strategy?)?
Investing on project if funds are available : If fund were available, would you invest in one, both or neither project? Why?
Define what is the percentage ionization of the benzoic acid : what is the percentage ionization of the benzoic acid in the resulting solution. Ka(benz acid)=6.5 * 10^-5

Reviews

Write a Review

Accounting Basics Questions & Answers

  Strative costs would not be incurred

Strative costs would not be incurred. What is Salisbury's minimum price in order for them to accept the offer from the new customer (instead of Gilbert Company)?

  Right of business type activities

In government wide financial statements information about fiduciary funds should be presented in a discrete column to the right of the business type activities

  What amount of drd may eagle claim

Eagle Corporation owns stock in Hawk Corporation and has TI of $160,000 for the year before considering the DRD. Hawk Corp. pays Eagle a dividend of $200,000, which was considered in calculating the $160,000. What amount of DRD may Eagle claim if ..

  Absorption-costing income statement

The gross margin that the company would disclose on an absorption-costing income statement is:

  Assumptions-principles and constraints of accounting

Please help me explain the following concepts: A conclusion stating how you think sound financial reporting depends on principles, assumptions, and constraints. Refer to the U.S. GAAP in your response.

  Projects fund for a multi-year capital project

What journal entry should be made at the beginning of the fiscal year to reestablish the Encumbrances account of a capital projects fund for a multi-year capital project?

  Construct the direct labor budget

With the number of workers currently employed, that means that the company is committed tp paying its direct labor work force at lease 5600 hours in total each month even if there is not enought work to keep them busy. Construct the direct labor b..

  Present value factors for the annuity

Dean signed an agreement to sell the plant for $350,000 January 1 year 10 and Lease it back for $15,000 per year, deans incremental borrowing rate is 6%. Present value factors for annuity

  Different measures for a balanced scorecard

Do you believe variance analysis is a good gauge for managers to keep controls over poor quality materials, excess material usage, excess labor usage, etc....? Also, why would different companies have different measures for a balanced scorecard?

  Schedule of interest revenue-bond discount amortization

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method.

  Journal entry to record transaction by perpetual inventory

On December 1, 2008, ABC Linens sold merchandise which costs $400 on account to the Green Hotel Co. for $600 with terms of 3/10, n/30. ABC Linens uses a perpetual inventory system. The journal entry to record this transaction on ABC Linens' books ..

  Amount of dollar sales when contribution margin ratio given

Ivan Company has a goal of earning $70,000 after-tax income. Ivan would need to pay $20,000 of income taxes at the target level of income. The contribution margin ratio is 30%. What amount of dollar sales must be achieved to reach the goal if fixe..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd