c On January 1, 2012, A Ma Wiley PLUS K- C edugen wileyplus.com /edugen/student/

Question

c On January 1, 2012, A Ma Wiley PLUS K- C edugen wileyplus.com /edugen/student/mainfr.un MESSAGE MY INSTRUCTOR STANDARD VIEW PRINTER VERSION BACK CALCULATOR NEXT ES 14,193,000 Cost Accumulated depreciation to date 1,577,000 Expected future net cash flows 11,039,000 7,569,600 Fair value Assume that Suarez will continue to use this asset in the future. As of December 31, 2014, 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, 2014. (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 dy LINK TO TEXT Prepare the journal entry to record depreciation expense for 2015. (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.) Debit Account Titles and Explanation Credit LINK TO TEXT The fair value of the equipment at December 31, 2015, is $8,042,700. Prepare the journal entry (if any) necessary to record this increase in fair value. (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.) Debit Date Account Titles and Explanation Credit Dec. 31 LINK TO TEXT 7:21 PM x H Ask me anything 12/14/2015

Explanation / Answer

requirement 1)

carrying amount = 14193000 - 1577000 = $ 12616000

Recoverable amount id higher of fair value less cost to sell and value in use.

fair value or cost to sell $ 7569600

value in use is expected future net cahs flow $ 11039000

recoverable amount would be $ 11039000

Impairment loss would be (12616000 - 11039000) = $ 1577000

Impairment loss debit $ 1577000

Accumulated Impairment losses credit $ 1577000

Requirement 2)

Depreciation Expense debit $ 2207800

Accumulated depreciation credit $ 2207800

Requirement 3)

Revaluation loss debit $ 788500

Asset credit $ 788500

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.