Computing and Assessing Plant Asset ImpairmentZeibart Company purchased equipment for $225,000 on July 1, 2012, with an estimated useful life of 10 tears and expected salvage of $25,000. Straight line depreciation is used. On July 1, 2016, economic factors cause the fair value market to decline to $90,000. On this date, Zeibart examined for impairment and estimates $125,000 in future cash inflow related to use of this equipment.a. Is the equipment impaired at 7/1/2016? Explainb. If the equipment is impaired on 7/1/2016, compute the impairment loss and prepare a journal entry to record loss. c. What amount of depreciation expense would Zeibart record the 12 months from 7/1/2016 through 6/30/2017? Prepare a journal entry to record the depreciation expense. (no change in salvage)d. Using the financial statement effect template , show how the entries in part b & c affect Zeibart Company’s balance sheet and income statement.

Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $562,500 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $48,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $82,400. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Depreciation Accumulated Depreciation, Year Expense End of Year 1 2 3 4 5 b. Double-declining-balance method Year Depreciation Expense 1 2 3 4 5 Accumulated Depreciation, End of Year Book Value, End of Year $ $ $ 48,400 $ $ Book Value, End of Year

Denger

Machinery purchased for $77,000 by Concord Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $5,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $6,000 at the end of that time. Assume straight-line depreciation and that Concord Corp. uses IFRS for financial statement purposes. Prepare the entry that is required to correct the prior years' depreciation, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Account Titles and Explanation Prepare the entry to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is…