Question
Presented below is information related to equipment owned by Swifty Company at December 31, 2020. Cost $6,370,000 Accumulated depreciation to date 750,000 Expected future net
Presented below is information related to equipment owned by Swifty Company at December 31, 2020.
| Cost | $6,370,000 | |
| Accumulated depreciation to date | 750,000 | |
| Expected future net cash flows | 5,100,000 | |
| Fair value | 3,630,000 |
Assume that Swifty will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of4years and no salvage value.
(a)
New attempt is in progress. Some of the new entries may impact the last attempt grading.
Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020.
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Financial and managerial accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
1st edition
111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114
