Account Titles and Explanation Debit Credit Show List of Accounts Link to Text A

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Account Titles and Explanation

Debit

Credit

Show List of Accounts

Link to Text

Account Titles and Explanation

Debit

Credit

Show List of Accounts

Link to Text

Account Titles and Explanation

Debit

Credit

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Presented below is information related to equipment owned by Sandhill Company at December 31, 2017.
Cost $10,800,000 Accumulated depreciation to date 1,200,000 Expected future net cash flows 8,400,000 Fair value 5,760,000
Assume that Sandhill will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years.

Explanation / Answer

Dec-31 Loss on Impairment 3840000 =(10800000-1200000-5760000)        Accumulated Depreciation—Equipment 3840000 Dec-31 Depreciation Expense 1152000 =5760000/5        Accumulated Depreciation—Equipment 1152000 Dec-31 No entry

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