Question
Sheridan Snowboarding Company, a public company, purchased equipment on January 10, 2017, for $660,000. At that time, management estimated that the equipment would have a
Sheridan Snowboarding Company, a public company, purchased equipment on January 10, 2017, for $660,000. At that time, management estimated that the equipment would have a useful life of 10 years and a residual value of $50,000. Sheridan uses the straight-line method of depreciation and has a December 31 year end. Sheridan tested the equipment for impairment on December 31, 2021, after recording the annual depreciation expense. It was determined that the equipments recoverable amount was $289,000, and that the total estimated useful life would be eight years instead of 10, with a residual value of $10,000 instead of $50,000.
What will appear on Sheridan's 2021 balance sheet with regard to this equipment?
Sheridan Snowboarding Company Balance Sheet (Partial) | ||
Assets | ||
$ | ||
Add/Less: | ||
|
2. Assuming no further impairments or recoveries, calculate the annual depreciation expense for the years 2022 to 2024. (Round depreciation rate to 2 decimal places, e.g. 15.75 and final answers to 0 decimal places, e.g. 5,275.)
Depreciation Expense | ||
2022 | $ | |
2023 | $ | |
2024 | $ |
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