ZuoTi.Pro
Question

Exercise 11-17 Presented below is information related to equipment owned by Crane Company at December 31, 2017. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,980,000 1,220,000 8,540,000 5,856,000 Crane intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. 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 (if any) 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 SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR EXERCISE The asset was not sold by December 31, 2018. The fair value of the equipment on that date is $6,466,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $24,400. (If no entry is required select No entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. 31

This question has 3 parts. Thank you.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Requirement-(a Workings: It is observed that the expected future net cash flows of $8,540,000 is less than assets carrying value of $9,760,000 and so the asset fails the recoverability test. Cost Accumulated Depreciation to date Carrying Value ($10,980,000 $1,220,000) $9,760,000 Fair Value Loss on impairment $10,980,000 $1,220,000 $5,856,000 $3,904,000 ($5,856,000 $9,760,000) DateGeneral Journal Debit Credit Dec. 31,Loss on Impairment $3,904,000 2017 Accumulated Dep. - Equipment 3,904,000 Requirement-fbl Workings: DateGeneral Journal Debit $9,760,000 Carrying Value as at Dec. 31, 2017 Remaining life of the asset, in years Depreciation expense for 2011 Credit Dec. 31, Depreciation Exp. - Equipment $1,952,000 $1,952,000 ($9,760,000/5 years) 2018 Accumulated Dep. - Equipment $1,952,000 Requirement-(C NO ENTRY IS REQUIRED as the restoration of any impairment loss is not permitted if the asset is held for use (or not sold off)

0 0
Add a comment
Know the answer?
Add Answer to:
This question has 3 parts. Thank you. Exercise 11-17 Presented below is information related to equipment...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Presented below is information related to equipment owned by Blue Company at December 31, 2020. Cost...

    Presented below is information related to equipment owned by Blue Company at December 31, 2020. Cost $10,980,000 Accumulated depreciation to date 1,220,000 Expected future net cash flows 8,540,000 Fair value 5,856,000 Blue intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the...

  • Presented below is information related to equipment owned by Blue Company at December 31, 2020, Cost...

    Presented below is information related to equipment owned by Blue Company at December 31, 2020, Cost Accumulated depreciation to date Expected future net cash flows Fair value $10.980,000 1,220,000 8,540,000 5,856,000 Blue intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the...

  • This question has 3 parts to it. thank you. Exercise 11-16 Presented below is information related...

    This question has 3 parts to it. thank you. Exercise 11-16 Presented below is information related to equipment owned by Grouper Company at December 31. 2017. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,810,000 1,090,000 7,630,000 5,232,000 Assume that Grouper 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...

  • Current Attempt in Progress Presented below is information related to equipment owned by Blue Company at...

    Current Attempt in Progress Presented below is information related to equipment owned by Blue Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,980,000 1,220,000 8,540,000 5,856,000 Blue intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. As of December 3 equipment has a remaining useful life of 5 years. la) Prepare the journal entry (if any) to record the...

  • *Exercise 11-16 Presented below is information related to equipment owned by Ivanhoe Company at December 31,...

    *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,...

    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,...

    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...

  • Exercise 11-16 Presented below is information related to equipment owned by Pearl Company at December 31,...

    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...

    Presented below is information related to equipment owned by Bonita 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 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...

  • Presented below is information related to equipment owned by Bonita Company at December 31, 2017. Cost...

    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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT