Question
Cost $10,980,000 Accumulated depreciation to date 1,220,000 Expected future net cash flows 8,540,000 Fair value 5,856,000 Assume that Blue will continue to use this asset
Cost | $10,980,000 | |
Accumulated depreciation to date | 1,220,000 | |
Expected future net cash flows | 8,540,000 | |
Fair value | 5,856,000 |
Assume that Blue will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.
Partially correct answer iconYour answer is partially correct.
Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Dec. 31 | enter an account title to record the transaction on December 31, 2017 | enter a debit amount | enter a credit amount |
enter an account title to record the transaction on December 31, 2017 | enter a debit amount | enter a credit amount |
eTextbook and Media
List of Accounts
Partially correct answer iconYour answer is partially correct.
Prepare the journal entry to record depreciation expense for 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
eTextbook and Media
List of Accounts
Partially correct answer iconYour answer is partially correct.
The fair value of the equipment at December 31, 2021, is $6,222,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Dec. 31 | enter an account title to record the transaction on December 31, 2018 | enter a debit amount | enter a credit amount |
enter an account title to record the transaction on December 31, 2018 | enter a debit amount | enter a credit amount |
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