Question
Gulf Consulting Co. reported the following on its December 31, 2021, balance sheet: Equipment (at cost) $700,000 In a disclosure note, Gulf indicates that it
Gulf Consulting Co. reported the following on its December 31, 2021, balance sheet: Equipment (at cost) $700,000 In a disclosure note, Gulf indicates that it uses straight-line depreciation over five years. Gulf's equipment averages 3.5 years at December 31, 2021. What is the book value of Gulf's equipment at December 31, 2021?
441,000
210,000
490,000
- Oak Inc. has the following information regarding its assets:
|
| Book Value | Estimated Cash Flows | Fair Value | ||||||
| Equipment | $ | 35,000 |
| $ | 40,000 |
| $ | 28,000 |
|
| Building | $ | 68,000 |
| $ | 70,000 |
| $ | 65,000 |
|
| Patent | $ | 30,000 |
| $ | 25,000 |
| $ | 22,000 |
|
What amount of loss should be recorded due to asset impairments?
$ 8,000
$ 9,000
$ 10,000
|
On January 1, 2021, Bricker Enterprises purchased a machine for $200,000. The estimated service life is 10 years with a $20,000 residual value. Bricker records partial-year depreciation based on the number of months in service. Depreciation for 2021, using the double-declining-balance method, would be: | |
|
$ 40,000
$ 32,000
$ 34,000 | |
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