Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 11-18 a, c The management of Blue Inc. was discussing whether certain equipment should be written off as a charge to current operations because

image text in transcribed

Exercise 11-18 a, c The management of Blue Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $1,098,000 with depreciation to date of $488,000 as of December 31, 2020. On December 31, 2020, management projected its future net cash flows from this equipment to be $366,000 and its fair value to be $280,600. The company intends to use this equipment in the future. Prepare the journal entry (if any) to record the impairment 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 in dent manually.) Account Titles and Explanation Date Debit Credit Dec. 31 SHOW LIST OF ACCOUNTS LINK TO XT At December 31, 2021, the equipment's fair value increased to $310,600. Prepare the journal entry (if any) 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.) Debit Credit Date Account Titles and Explanation Dec. 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: John Hoggett, Lew Edwards, John Medlin

6th Edition

0470806583, 978-0470806586

More Books

Students also viewed these Accounting questions