Adam, Inc. purchased equipment in 2021 at a cost of $600,000. Two years later it became apparent to Adam, Inc. that this equipment had suffered an impairment of value. In early 2023, the book value of the asset was $510,000 and it is estimated that the fair value or market value is now $465,000. The entry to record the impairment is... O a. No entry is necessary asp write-off violates the historical cost principle O b. Debit Accumulated depreciation 90,000 and credit Reserve for Loss on Impairment of Equipment 90,000 O c. Debit Loss on Impairment of Equipment 70,000 and credit Accumulated Depreciation-Equipment 70,000 O d. Debit Loss on impairment of Equipment 45,000 and credit Accumulated Depreciation-Equipment 45,000

Adam, Inc. purchased equipment in 2021 at a cost of $600,000. Two years later it became apparent to Adam, Inc. that this equipment had suffered an impairment of value. In early 2023, the book value of the asset was $510,000 and it is estimated that the fair value or market value is now $465,000. The entry to record the impairment is... O a. No entry is necessary asp write-off violates the historical cost principle O b. Debit Accumulated depreciation 90,000 and credit Reserve for Loss on Impairment of Equipment 90,000 O c. Debit Loss on Impairment of Equipment 70,000 and credit Accumulated Depreciation-Equipment 70,000 O d. Debit Loss on impairment of Equipment 45,000 and credit Accumulated Depreciation-Equipment 45,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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