FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (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.)
Date Account Titles and Explanation
Dec. 31
Debit
Credit
Transcribed Image Text:Presented below is information related to equipment owned by Wildhorse Company at December 31, 2025.
Cost
Accumulated depreciation to date
Expected future net cash flows
Fair value
$10,620,000
1,180,000
8,260,000
5,664,000
Assume that Wildhorse will continue to use this asset in the future. As of December 31, 2025, the equipment has a rer
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