1 | |||
Debit | Credit | ||
Loss on Impairment | 1040000 | =4400000-3360000 | |
Copyrights | 1040000 | ||
2 | |||
Debit | Credit | ||
Amortization Expense | 336000 | =3360000/10 | |
Copyrights | 336000 | ||
3 | |||
Debit | Credit | ||
NO entry | 0 | ||
NO entry | 0 |
Exercise 12-13 Presented below is information related to copyrights owned by Blossom Company at December 31,...
Presented below is information related to copyrights owned by Sunland Company at December 31, 2020. Cost Carrying amount Expected future net cash flows Fair value $8,520,000 4,470,000 4,020,000 3,450,000 Assume that Sunland Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not use...
Presented below is information related to equipment owned by Blossom Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $11,070,000 1,230,000 8,610,000 5,904,000 Blossom intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,600. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the...
*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...
Exercise 11-16 Presented below is information related to equipment owned by Vaughn Company at December 31, 2017 Cost Accumulated depreciation to date 1,010,000 Expected future net cash flows Fair value $9,090,000 7,070,000 4,848,000 Assume that Vaughn will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry...
Exercise 11-16 Presented below is information related to equipment owned by Cheyenne Company at December 31, 2017. Cost $10,800,000 Accumulated depreciation to date 1,200,000 Expected future net cash flows 8,400,000 Fair value 5,760,000 Assume that Cheyenne 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...
Presented below is information related to copyrights owned by Sheridan Company at December 31, 2020. Cost $8,640,000 Carrying amount 4,270,000 Expected future net cash flows 3,940,000 Fair value 3,360,000 Assume that Sheridan Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. (a) Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not...
Exercise 11-16 Presented below is information related to equipment owned by Pearl Company at December 31, 2017. Cost $10,440,000 Accumulated depreciation to date 1,160,000 Expected future net cash flows 8,120,000 Fair value 5,568,000 Assume that Pearl 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...
Presented below is information related to equipment owned by Bonita Company at December 31, 2017. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,800,000 1,200,000 8,400,000 5,760,000 Bonita intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,000. 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...
Exercise 11-16 Presented below is information related to equipment owned by Oriole Company at December 31, 2017. $11,070,000 Cost Accumulated depreciation to date 1,230,000 Expected future net cash flows 8,610,000 Fair value 5,904,000 Assume that Oriole will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry...
Presented below is information related to equipment owned by Sandhill Company at December 31, 2017. Cost $6,960,000 Accumulated depreciation to date 696,000 Expected future net cash flows 4,640,000 Fair value 3,248,000 Assume that Sandhill will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required,...