Question

Presented below is information related to equipment owned by Bramble Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,260,000 1,140,000 7,980,000 5,472,000 Bramble intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,800. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Your answer is partially correct. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "N 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 Loss on Impairment 3648000 Accumulated Depreciation Equipment 3648000

Answer 1

Answer Pageno Particuloss Amount 10,260,000 Cost Accumulated depreciation amount 1,140,000 Carrying Recoverable amount 9,120,000 5449,200 (5,472,000- 22 800) Loss on Impair ment 3,670,800 Date a, Dec.31, 2020 Account Title ? Explanation Debit Credit Loss on impairment 3610 800 Accumulated Deporeciation 3670820 - Equipment Ib. Dec, 31 2021 No Entry Required 547200 2021 s Dec, 31 Accumulated Deporuciation - Equipment Recovery ofi impairment hos [C60u 2006–22 1800)-54:20 547200