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Crane Company manufactures routers used in industrial modems. On May 15, 2017, Crane purchased a precision welding machine at a retail price of $117,600. Crane
Crane Company manufactures routers used in industrial modems. On May 15, 2017, Crane purchased a precision welding machine at a retail price of $117,600. Crane paid 5% sales tax on this purchase and hired a contractor to build a "clean" platform enclosure for the machine for $8,850. Crane estimates the machine will have a 5-year useful life with a salvage value of $9,800 at the end of 5 years. Crane uses straight-line depreciation and employs the "half-year" convention in accounting for partial-year depreciation. Crane's fiscal year ends on December 31. At what amount should Crane record the acquisition cost of the machine? Acquisition cost of the machine $ eTextbook and Media List of Accounts How much depreciation expense should Crane record in 2017 and in 2018? $ Depreciation expense 2017 Depreciation expense 2018 $ eTextbook and Media List of Accounts At what amount will the machine be reported in Crane's balance sheet at December 31, 2018? Amount to be reported in balance sheet $ eTextbook and Media List of Accounts During 2019, Crane's circuit board business is experiencing significant competition from companies with more advanced low- heat circuit boards. As a result, at June 30, 2019, Crane conducts an impairment evaluation of the welding machine purchased in 2017. Crane determines that undiscounted future cash flows for the machine are estimated to be $73,200 and the fair value of the machine, based on prices in the re-sale market, to be $63,000. Prepare the journal entry to record an impairment, if any, on the welding machine. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
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