Question
At December 31, 2021, H Inc. has equipment with a cost of $500,000 and accumulated depreciation of $115,000. The equipment has a total useful life
At December 31, 2021, H Inc. has equipment with a cost of $500,000 and accumulated depreciation of $115,000. The equipment has a total useful life of four years with a residual value of $40,000. H Inc. uses straight-line depreciation. H Inc. determined that the recoverable amount for this asset is $250,000.
- Fill in the following information.
Annual Depreciation amount for 2021
Carrying amount at December 31, 2021
- Prepare the journal entry for the impairment loss
DEBIT CREDIT
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
