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could someone please help me Splish Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $12,400,000 and
could someone please help me
Splish Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $12,400,000 and had an estimated useful life of 8 years with no salvage value. At December 31,2020 , new technoloky was introctuced that would accelerate the obsolescence of Splish's equipment. Splish's controller estimates that expected future net cash flows on the equipment will be $7,812,000 and that the fair value of the equipment is $6,944,000. 5 plish intends to continue using the equipment, but it is estimated that the remaining useful Ilfe is 4 years. Splish uses straight-line depreciation. (a) Prepare the journal entry (if any) to record the impairment at December 31. 2020, (if no entry is requint, select "No entry" for the account titles and enter O for the amounts Credit account itiles are outomatically ladented when amoumt is entered. Do not indent manually) Prepare all required journal entries (if any) at December 31, 2021. The fair value of the equipment at December 31,2021 , is estimated to be $7,316,000. (If no entry is requlred, select "No entry" for the cocount titles and enter of for the amounts. Oredlt ccootint tites are automaticolly indented when amount is entered. Do not indent manuafiyd Prepare the journal entry (if amy) to record the impairment at December 31,2020 and for the equipment at December 31,2021. assuming that Splish intends to dispose of the equipment and that it has not been disposed of as of December 31 . 2021 . If no thtir/ is requlred, select "No entry" for the account titles and enter o for the omounts. Credit account titles are outomaticatly indentid when amount is entered. Do not indent manually) Step by Step Solution
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