Practice Problem 11-1 Sheridan Company manufactures routers used in industrial modems. On May 15, 2017, Sheridan purchased a precision welding machine at a retail price of $105,600, Sheridan paid 5% sales tax on this purchase and hired a contractor to build a "clean" platform enclosure for the machine for $7,950. Sheridan estimates the machine will have a 5-year useful life, with a salvage value of $8,800 at the end of 5 years. Sheridan uses straight-line depreciation and employs the half-year" convention in accounting for partial-year depreciation. Sheridan's fiscal year ends on December 31 Your answer is correct. At what amount should Sheridan record the acquisition cost of the machine? oquision cent of the mahine Your answer is correct. How much depreciation expense should Sheridan record in 2017 and in 2018 Degreciation experse 2013 Your answer i$ correct. At what amount will the machine be reported in Sheridan's balance sheet at December 31, 2018 6a be reported in balance she Your answer is partially correct. Try again. During 2019, Sheridan's circuit board business is experiencing significant competition from companies with more advanced low-heat circuit boards. As a result, at June 30, 2019, Sheridan conducts an impairment evaluation of the stamping machine purchased in 2017. Sheridan determines that undiscounted future cash flows for the machine are estimated to be $66,000 and the fair value of the machine, based on prices in the re-sale market, to be $57,000 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Practice Problem 11-1 Sheridan Company manufactures routers used in industrial modems. On May 15, 2017, Sheridan purchased a precision welding machine at a retail price of $105,600. Sheridan paid 5% sales tax on this purchase and hired a contractor to build a "clean" platform enclosure for the machine for $7,950. Sheridan estimates the machine will have a 5-year useful life, with a salvage value of $8,800 at the end of 5 years. Sheridan uses straight-line depreciation and employs the "half-year" convention in accounting for partial-year depreciation. Sheridan's fiscal year ends on December 31. ation expense should Sneridan record 11003 22006 W SOLUTION SHOW ANSWER rrect. ill the machine be reported in Sheridan ce sheet 85821 W SOLUTION SHOW ANSWER rtially correct. Try again. idan's circuit board business is experie -heat circuit boards. As a result, at Ju tamping machine purchased in 2017. ine are estimated to be $66,000 and t be $57,000. l entry to record an impairment, if any " for the account titles and enter0 ented when amount is entered. D r answer is correct. at amount should Sheridan record the on cost of the machine 118830 IST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER TEXT LINK TO TExT r answer is correct. much depreciation expense should She tion expense 2017 11003 tion expense 2018 22006 IST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER TEXT LINK TO TEXT r answer is correct. at amount will the machine be reporte to be reported in balance sheet85821 IST OF ACCOUNTS SHOW SOLUTION SHOW
