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.
The fair value of the equipment at December 31, 2021, is $5,508,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
Homework Answers
No adjustments shall be made to the value of the equipment when there is increase in the fair value of the equipment. Adjustments shall be made at the time of sale.
NO ENTRY.
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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...
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.
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 Accumulated depreciation to date Expected future net cash flows Fair value $9,720,000 1,080,000 7,560,000 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 Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No...
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 Accumulated depreciation to date Expected future net cash flows Fair value $9,720,000 1,080,000 7,560,000 5,184,000 Windsor intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,600. As of December 31, 2020, the equipment has a remaining useful life of 5 years. - Your answer is partially currect. Prepare the journal entry (if anyl...
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 Windsor intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,600. 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...
Exercise 11-16 Presented below is information related to equipment owned by Windsor Company at December 31,...
Exercise 11-16 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. Your answer is partially correct. Try again. Prepare the journal entry (if any) to record the impairment of the asset...
Presented below is information related to equipment owned by Crane Company at December 31, 2020. Cost...
Presented below is information related to equipment owned by Crane Company at December 31, 2020. Cost $9,090,000 Accumulated depreciation to date 1,010,000 Expected future net cash flows 7,070,000 Fair value 4,848,000 Assume that Crane will continue to use this asset in the future. 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 asset at December 31, 2020 Prepare the journal entry to...
Presented below is information related to equipment owned by Davis Company at December 31, 2020. Cost...
Presented below is information related to equipment owned by Davis Company at December 31, 2020. Cost $6,750,000 Accumulated depreciation to date 750,000 Expected future net cash flows 5,250,000 Fair value 3,600,000 Assume that Davis will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Assume the same information as above, except that Davis intends to dispose of the equipment in the coming year. Instructions (a) Prepare...
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 Whispering Company at December 31, 2020.
Presented below is information related to equipment owned by Whispering Company at December 31, 2020. Cost$9,990,000Accumulated depreciation to date 1,110,000Expected future net cash flows 7,770,000Fair value 5,328,000Whispering intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22.200. 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 asset at December 31, 2020.Prepare the journal entry (if any)...
Presented below is information related to copyrights owned by Crane Company at December 31, 2020. Cost...
Presented below is information related to copyrights owned by Crane Company at December 31, 2020. Cost $8,530,000 Carrying amount 4,260,000 Expected future net cash flows 3,930,000 Fair value 3,580,000 Assume that Crane 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...
Presented below is information related to equipment owned by Windsor Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,720,000 1,080,000 7,560,000 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 Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No...
Presented below is information related to equipment owned by Windsor Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,720,000 1,080,000 7,560,000 5,184,000 Windsor intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,600. As of December 31, 2020, the equipment has a remaining useful life of 5 years. - Your answer is partially currect. Prepare the journal entry (if anyl...
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 Windsor intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,600. 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...
Exercise 11-16 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. Your answer is partially correct. Try again. Prepare the journal entry (if any) to record the impairment of the asset...
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