Question
Riverbed Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10.20 million and had an estimated useful
Riverbed Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10.20 million and had an estimated useful life of 8 years with no residual value. In early April 2020, a part costing $890,000 and designed to increase the machinerys efficiency was added. The machines estimated useful life did not change with this addition. By December 31, 2020, new technology had been introduced that would speed up the obsolescence of Riverbeds equipment. Riverbeds controller estimates that expected undiscounted future net cash flows on the equipment would be $6.43 million, and that expected discounted future net cash flows on the equipment would be $5.92 million. Fair value of the equipment at December 31, 2020, was estimated to be $5.71 million. Riverbed intends to continue using the equipment, but estimates that its remaining useful life is now four years. Riverbed uses straight-line depreciation. Assume that Riverbed is a private company that follows ASPE.
**FILL IN THE BLANKS**
List of Accounts:
- Accumulated Depletion
- Accumulated Depreciation - Vehicles
- Accumulated Depreciation - Buildings
- Accumulated Depreciation - Equipment
- Accumulated Depreciation - Furniture
- Accumulated Depreciation - Machinery
- Accumulated Depreciation - Vehicles
- Accumulated Impairment Losses - Building
- Accumulated Impairment Losses - Equipment
- Accumulated Impairment Losses - Land
- Accumulated Impairment Losses - Machinery
- Accumulated Impairment Losses - Mine
- Accumulated Impairment Losses - Patents
- Accumulated Impairment Losses - Vehicles
- Allowance for Loss on Write-down of Held for Sale Assets
- Asset Retirement Obligation
- Buildings
- Cash
- Common Shares
- Contribution Expense
- Cost of Goods Sold
- Deferred Revenue - Government Grants
- Depreciation Expense
- Equipment
- Exploration Expense
- Furniture
- Gain on Disposal of Vehicles
- Gain on Disposal of Building
- Gain on Disposal of Equipment
- Gain on Disposal of Furniture
- Gain on Disposal of Machinery
- Gain on Disposal of Vehicle
- Gain on Disposal of Land
- Interest Expense
- Interest Payable
- Inventory
- Investment Property
- Land
- Loss on Disposal of Vehicles
- Loss on Disposal of Building
- Loss on Disposal of Equipment
- Loss on Disposal of Machinery
- Loss on Disposal of Land
- Loss on Disposal of Vehicles
- Loss on Expropriation
- Loss on Impairment
- Loss on Write-down of Held for Sale Assets
- Machinery
- Mineral Resources
- No Entry
- Notes Payable
- Oil Property
- Recovery of Loss from Impairment
- Recovery of Loss from Write-down of Held for Sale Assets
- Repairs and Maintenance Expense
- Retained Earnings
- Revaluation Surplus (OCI)
- Revenue - Government Grants
- Royalty Expense
- Vehicles
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started