Cowgirl Company normally acquires a large number of individually insignificant properties each year. In computing impairment, Cowgirl
Question:
Cowgirl Company normally acquires a large number of individually insignificant properties each year. In computing impairment, Cowgirl Company groups these properties by year of acquisition. During 2018, Cowgirl Company acquired individually insignificant unproved property costing a total of $500,000. In the past, Cowgirl Company has abandoned 60% of all individually insignificant unproved properties without ever finding oil or gas. It takes Cowgirl Company an average of three years to determine whether a property will be proved or surrendered.
REQUIRED: Give the entry to record impairment.
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To record the impairment of unproved properties acquired during 2018 we need to ...View the full answer
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