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Can you please help me understand this question ABC Company was preparing the annual financial statements and, as part of its year-end procedures, prepared the
Can you please help me understand this question
ABC Company was preparing the annual financial statements and, as part of its year-end procedures, prepared the following schedule based on adjusted values at March 31, 2020: | |||||||||||
Asset | Cost | Accumulated Depreciation | Recoverable Amount | Residual Value | Depreciation Method | Remaining Life | |||||
Furniture | $25,000 | $20,000 | $10,000 | $500 | Straight Line | 3 years | |||||
Computer | $2,000 | $1,000 | $500 | - | Double Declining | 5 yeas | |||||
Land | $105,000 | - | $90,000 | N/A | N/A | Unlimited | |||||
Machine | $90,000 | $25,000 | $35,000 | $5,000 | Straight Line | 3 years | |||||
N/A = Not applicable | |||||||||||
Required | |||||||||||
1. Record the entry for any impairment loss assuming that ABC Company recorded no impairment losses in previous years. | |||||||||||
2. Record the entry for depreciation on each of the assets at March 31, 2020. Assume there was no change in residual or useful lives regardless of impairment losses. | |||||||||||
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