Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based

Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at December 31, 2020: (Do not round intermediate calculations. Round final answers to nearest whole dollar.)

Asset Date of Purchase Deprec. Method* Cost Residual Value Useful Life Accum. Deprec. Recoverable Amount
Equipment May 1/15 Units $ 60,000 $ 4,750 8,500 units $ 35,750 $ 7,750
Furniture Jun. 28/15 DDB 27,000 3,500 8 yrs 22,559 5,050
Land Apr. 5/15 N/A 100,000 N/A N/A N/A 116,800
Office building Apr. 5/15 SL 107,000 30,500 15 yrs 36,500 67,500
Warehouse Apr. 5/15 SL 77,500 25,000 20 yrs 27,938 60,100

*DDB = Double-declining-balance; SL = Straight-line; Units = Units-of-production; N/A = Not applicable

Required: 1. Record any impairment losses at December 31, 2020. Assume Kane Biotech has recorded no impairment losses in previous years. (Record impairment loss on PPE, if any.)

2. Record depreciation for each asset at December 31, 2021. Assume that there was no change in the residual values or useful lives regardless of any impairment losses that might have occurred. The equipment produced 2,550 units during 2021.(Record the revised depreciation on equipment.)

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

Handbook Of Energy Audits

Authors: Albert Thumann, Terry Niehus, William J. Younger

9th Edition

1466561629, 978-1466561625

More Books

Students also viewed these Accounting questions