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Crane Company owns equipment that cost $909,000 and has accumulated depreciation of $383,800. The expected future net cash flows from the use of the asset are expected to be $555,000. The fair value of the equipment is $404,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation No Entry Debit Credit No Entry

Crane Company owns equipment that cost $909,000 and has accumulated depreciation of $383,800. The expected future net cash flows from the use of the asset are expected to be $555,000. The fair value of the equipment is $404,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation No Entry Debit Credit No Entry

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Crane Company owns equipment that cost $909,000 and has accumulated depreciation of $383,800. The expected future net cash flows from the use of the asset are expected to be $555,000. The fair value of the equipment is $404,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation No Entry Debit Credit No Entry
Transcribed Image Text:Crane Company owns equipment that cost $909,000 and has accumulated depreciation of $383,800. The expected future net cash flows from the use of the asset are expected to be $555,000. The fair value of the equipment is $404,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation No Entry Debit Credit No Entry
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