Question

*Exercise 11-16 Presented below is information related to equipment owned by Ivanhoe Company at December 31, 2017. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,620,000 1,180,000 8,260,000 5,664,000 Assume that Ivanhoe will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required, select "No entry" for the account titles and enter o for the amounts, Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Prepare the journal entry to record depreciation expense for 2018. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit The fair value of the equipment at December 31, 2018, is $6,018,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31

Answer 1

For last question

Debit Coldit Particulatus And pate $877600 Dec 31 Loss on impartment $57.76, to Accumulated depreciation second the impairment of asset working nole Impairment depreciation Lass = Cast - - Accumulated Fair value 10620000 - 1,180,000 - 5664.000 = $ 37,76.000 To record Depreciation Expense By Year 2018 Caelit Date particulars Depreciation Expense Ale pebit $1132800 by $ 11,32,800 Accumulated depreciation to acord depaecration Expere 1 working note 2 cast al & Accumulated de preciation (6) A loss on impartment (o Begiming wor ason 2018 d=a-b-c7 Pemaining useful life (e) Depreciation Expenses del $ 10 620,000 $ 18900 $ 37 5664002 Steau $ 1132,800

No entry because the reversal of impairment loss is not allowed

Thank you

I hope you understand