Pharoah Inc. manufactures miniature circuit boards used in smartphones. On June 5, 2021, Pharoah purchased a...

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Pharoah Inc. manufactures miniature circuit boards used in smartphones. On June 5, 2021, Pharoah purchased a circuit board stamping machine at a retail price of $24,000. Pharoah paid 5% sales tax on this purchase and hired a contractor to build a specially wired platform for the machine for $1,800, to meet safety requirements. Pharoah estimated the machine would have a 5-year useful life, with a residual value of $2,000 at the end of 5 years. Pharoah uses straight-line depreciation and employs the "half-year" convention in accounting for partial-year depreciation. Pharoah's fiscal year ends on December 31 and follows ASPE. At what amount should Pharoah record the acquisition cost of the machine? Acquisition cost of the machine How much depreciation expense should Pharoah have recorded in 2021 and in 2022? Depreciation expense eTextbook and Media 2021 $ 2022 At what amount will the machine be reported in Pharoah's SFP at December 31, 2022? Machine reported at eTextbook and Media During 2023, Pharoah's circuit board business is experiencing significant competition from companies with more advanced low- heat circuit boards. As a result, at June 30, 2023, Pharoah conducts an impairment evaluation of the stamping machine purchased in 2021. Pharoah determines that undiscounted future cash flows for the machine are estimated to be $15,000 and the fair value of the machine, based on prices in the re-sale market, to be $14,100. Prepare the journal entry to record an impairment, if any, on the stamping machine. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit Pharoah Inc. manufactures miniature circuit boards used in smartphones. On June 5, 2021, Pharoah purchased a circuit board stamping machine at a retail price of $24,000. Pharoah paid 5% sales tax on this purchase and hired a contractor to build a specially wired platform for the machine for $1,800, to meet safety requirements. Pharoah estimated the machine would have a 5-year useful life, with a residual value of $2,000 at the end of 5 years. Pharoah uses straight-line depreciation and employs the "half-year" convention in accounting for partial-year depreciation. Pharoah's fiscal year ends on December 31 and follows ASPE. At what amount should Pharoah record the acquisition cost of the machine? Acquisition cost of the machine How much depreciation expense should Pharoah have recorded in 2021 and in 2022? Depreciation expense eTextbook and Media 2021 $ 2022 At what amount will the machine be reported in Pharoah's SFP at December 31, 2022? Machine reported at eTextbook and Media During 2023, Pharoah's circuit board business is experiencing significant competition from companies with more advanced low- heat circuit boards. As a result, at June 30, 2023, Pharoah conducts an impairment evaluation of the stamping machine purchased in 2021. Pharoah determines that undiscounted future cash flows for the machine are estimated to be $15,000 and the fair value of the machine, based on prices in the re-sale market, to be $14,100. Prepare the journal entry to record an impairment, if any, on the stamping machine. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit

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Acquisition cost of the machine The acquisition cost of the machine includes the purchase price and any additional costs directly attributable to brin... View the full answer