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Question of MicroCredential 2 On 31/12/2023, ABC Company classified one of its departments as a disposal group held for sale and measured it at fair value less costs to sell per IFRS 5. On this date, the fair value less costs to sell totaled 2,850,000 Following are the carrying amount for the department's assets at this date-after depredation and amortization-: Asset Carrying amount at initial classification as held for sale Reaming useful life after classification as held for sale Building $2,000,000 20 years, no residual value, Straight Line method of depreciation Equipment $700,000 5 years Patent $300,000 3 years Goodwill $400,000 Cash and $180,000 Receivables Total $3,580,000 Instructions: 1- Calculate the carrying amount for all the assets above directly after recognizing the decline in the value because of classification as held for sale. 2- Assuming that ABC company did not dispose of the department during 2024, and the company prepares quarterly financial reports. What will be the depreciation expense for the building for the first quarter of year 2024.

          Question of MicroCredential 2
On 31/12/2023, ABC Company classified one of its departments as a disposal group held for
sale and measured it at fair value less costs to sell per IFRS 5. On this date, the fair value less
costs to sell totaled 2,850,000
Following are the carrying amount for the department's assets at this date-after depredation
and amortization-:
Asset
Carrying amount at initial classification as
held for sale
Reaming useful life after
classification as held for sale
Building
$2,000,000
20 years, no residual value,
Straight Line method of
depreciation
Equipment
$700,000
5 years
Patent
$300,000
3 years
Goodwill
$400,000
Cash and
$180,000
Receivables
Total
$3,580,000
Instructions:
1- Calculate the carrying amount for all the assets above directly after recognizing the
decline in the value because of classification as held for sale.
2- Assuming that ABC company did not dispose of the department during 2024, and the
company prepares quarterly financial reports. What will be the depreciation expense for
the building for the first quarter of year 2024.

Question of MicroCredential 2
On 31/12/2023, ABC Company classified one of its departments as a disposal group held for
sale and measured it at fair value less costs to sell per IFRS 5. On this date, the fair value less
costs to sell totaled 2,850,000
Following are the carrying amount for the department's assets at this date-after depredation
and amortization-:
Asset
Carrying amount at initial classification as
held for sale
Reaming useful life after
classification as held for sale
Building
2,000,000
20 years, no residual value,
Straight Line method of
depreciation
Equipment700,000
5 years
Patent
300,000
3 years
Goodwill400,000
Cash and
180,000
Receivables
Total3,580,000
Instructions:
1- Calculate the carrying amount for all the assets above directly after recognizing the
decline in the value because of classification as held for sale.
2- Assuming that ABC company did not dispose of the department during 2024, and the
company prepares quarterly financial reports. What will be the depreciation expense for
the building for the first quarter of year 2024.

Added by Gloria L.

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