Impairment loss = $11,070,000 - $1,230,000 - ($5,904,000 - $24,600) = $3,960,600
Recovery of impairment loss = $6,519,000 - ($24,600 + $5,879,400) = $615,000
Date | Account title and explanation | Debit | Credit |
Dec 31, 2020 | Loss on impairment | $3,960,600 | - |
Accumulated depreciation | - | $3,960,600 | |
(To record impairment loss) | |||
Dec 31, 2021 | No entry | ||
Dec 31, 2021 | Accumulated depreciation | $615,000 | - |
Recovery of impairment loss | - | $615,000 | |
(To record increase in fair value of equipment) |
Presented below is information related to equipment owned by Blossom Company at December 31, 2020. Cost...
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