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Presented below is information related to equipment owned by Swifty Company at December 31, 2020. Cost (residual value $0) $8,993,900 Accumulated depreciation to date 1,003,900
Presented below is information related to equipment owned by Swifty Company at December 31, 2020.
Cost (residual value $0) | $8,993,900 | ||
Accumulated depreciation to date | 1,003,900 | ||
Value-in-use | 5,547,800 | ||
Fair value less cost of disposal | 4,374,440 |
Assume that Swifty will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 8 years. Swifty uses straight-line depreciation.
(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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