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BE11.7 (LO 2) Holt Company purchased a computer for $8,000 on January 1,2019 . Straight-line depreciation is used, based on a 5-year life and a
BE11.7 (LO 2) Holt Company purchased a computer for $8,000 on January 1,2019 . Straight-line depreciation is used, based on a 5-year life and a $1,000 salvage value. In 2021, the estimates are revised. Holt now feels the computer will be used until December 31, 2022, when it can be sold for $500. Compute the 2021 depreciation. BE11.8 (LO 3) Jurassic Company owns equipment that cost $900,000 and has accumulated depreciation of $380,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair value of the equipment is $400,000. Prepare the journal entry, if any, to record the impairment loss. BE11.9 (LO 4) Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has occurred, Everly must restore the property (estimated fair value of the obligation is $80,000 ), after which it can be sold for $160,000. Everly estimates that 4,000 tons of coal can be extracted. If 700 tons are extracted the first year, prepare the journal entry to record depletion
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