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Presented below is information related to equipment owned by Bramble Company at December 31, 2020. Cost $10,260,000 Accumulated depreciation to date 1,140,000 Expected future net
Presented below is information related to equipment owned by Bramble Company at December 31, 2020. Cost $10,260,000 Accumulated depreciation to date 1,140,000 Expected future net cash flows 7,980,000 Fair value 5,472,000 Assume that Bramble will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. The fair value of the equipment at December 31, 2021, is $5,814,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
Presented below is information related to equipment owned by Bramble Company at December 31, 2020.
Cost $10,260,000
Accumulated depreciation to date 1,140,000
Expected future net cash flows 7,980,000
Fair value 5,472,000
Assume that Bramble will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.
The fair value of the equipment at December 31, 2021, is $5,814,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th Global Edition
9781292018201
