(Impairment) Assume the same information as E11-16, except that Suarez intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,000.Instructions(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017.(b) Prepare the journal entry (if any) to record depreciation expense for 2018.(c) The asset was not sold by December 31, 2018. The fair value of the equipment on that date is $5,300,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $20,000.

(Impairment) Assume the same information as E11-16, except that Suarez intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,000.Instructions(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017.(b) Prepare the journal entry (if any) to record depreciation expense for 2018.(c) The asset was not sold by December 31, 2018. The fair value of the equipment on that date is $5,300,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $20,000.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 66P

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