Question
Presented below is information related to equipment owned by Windsor Company at December 31, 2020. Cost $9,720,000 Accumulated depreciation to date 1,080,000 Expected future net
Presented below is information related to equipment owned by Windsor Company at December 31, 2020.
| Cost | $9,720,000 | |
| Accumulated depreciation to date | 1,080,000 | |
| Expected future net cash flows | 7,560,000 | |
| Fair value | 5,184,000 |
Assume that Windsor 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 $5,508,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
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Strategic Management Theory And Cases An Integrated Approach
Authors: Charles W. L. Hill, Melissa A. Schilling, Gareth R. Jones
13th Edition
0357033841, 978-0357033845
