Brief Exercise 11-8 Novak Company owns equipment that cost $936,000 and has accu

Question

Brief Exercise 11-8 Novak Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200. The expected future net cash flows from the use of the asset are expected to be $520,000. The fair value of the equipment is $416,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts, Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Explanation / Answer

Loss on impairment 124800 =(936000-395200)-416000            Accumulated depreciation 124800

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