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

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

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

Cost		$9,720,000
Accumulated depreciation to date		1,080,000
Expected future net cash flows		7,560,000
Fair value		5,184,000

Assume that Windsor will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.

Prepare the journal entry to record depreciation expense for 2021.

business accounting

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Answer 1

Answer #1

The entry would be

Account	Debit	Credit
Depreciation expense	1,036,800
Accumulated Depreciation - Equipment		1,036,800

(5,184,000/5)

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Answer 2

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