Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (If no entry is required, select "Noentry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do notindent manually. List debit entry before credit entry.)Date Account Titles and ExplanationDec. 31DebitCredit Presented below is information related to equipment owned by Wildhorse Company at December 31, 2025.CostAccumulated depreciation to dateExpected future net cash flowsFair value$10,620,0001,180,0008,260,0005,664,000Assume that Wildhorse will continue to use this asset in the future. As of December 31, 2025, the equipment has a rer

Impairment loss : when the carrying value of assets is lower than its recoverable value,it will be…

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 lif. 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 ren of Euopro

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 lif. 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 ren of Euopro

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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(Recording and Amortization of Intangibles) Parrish Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020: 1/2/20 Purchased patent (8-year life) $ 625,000 4/1/20 Purchased goodwill (indefinite life) 540,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 675,000 8/1/20 Payment for copyright (5-year life) 246,000 9/1/20 Research and development costs 342,500 $2,428,500 Instructions Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2020, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)
Revaluation On January 1, 2018, the following data was gathered regarding revaluation of the equipment Equipment Accumulated Depreciation Age of asset Fair Value Cost 8,000,000 4,500,000 9 years 6,125,000 On January 2, 2019 the equipment was sold for 5,500,000 cash. Required: Fill-out the table below and prepare the journal entries for 2018 and the sale in 2019 using (present necessary solutions) Proportional method Eamination method Appreciation |(RC-Cost) Cost Replacement Cost Equipment Accumulated Depreciation CA/FVIRS Depreciation 2018 Balance of Revaluation Surplus as of December 31, 2018 Gain on Sale of equipment on January 2, 2019
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At December 31, Year 5, Aaron Co. had the following property, plant, and equipment: Asset Fair Value Cost to Sell Present Value of All Cash Flows Expected from the Asset Sum of All Undiscounted Cash Flows Expected from the Asset Useful Life from the Acquisition Date (Depreciation Method) Residual Value Equipment $220,000 $5,000 $230,000 $255,000 6 years (Straight Line) $0 Machine set 310,000 8,000 320,000 335,000 4 years (SYD) 0 Land 660,000 9,000 600,000 640,000 Determine the impairment losses recognized for Year 5 under U.S. GAAP and IFRS. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive numbers. If the correct answer is zero, enter a zero (0). Purchase Receipt 3 - Land Purchase Date: 1/1/Year 3 Purchase Amount: $650,000 Purchase Receipt 2 - Machine Set Purchase Date: 1/1/Year 5 Purchase Amount: $600,000 Purchase Receipt 1 - Equipment Purchase Date: 7/1/Year 2 Purchase…
The property, plant, and equipment section of the Jasper Company's December 31, 2023, balance sheet contained the following: Property, plant, and equipment: Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total property, plant, and equipment Machine 101 102 103 Cost $ 48,400 79,000 20,000 Date Acquired 1/1/2021 6/30/2022 9/1/2023 $ 780,000 (150,000) 147,400 Residual Value $ 6,000 7,000 2,000 ? The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $30,000 for the building is anticipated. The equipment is comprised of the following three machines: $ 110,000 Life (in Years) 8 9 8 630,000 ? ? The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $54,000. Early in 2024, the useful life of machine 101 was revised to five years in total, and the residual value was revised to zero. Required: 1. Calculate the accumulated…
How much is the correct total amortization expense for 2020?
During 2021, ABC Co. purchased intangible assets and debited them all to "Intangible assets". $250,000 $66,000 $50,000 1-Jan Patent 7-Year Life 1-Jun Goodwill Indefinite Life 1-Oct Research and development costs (a). Prepare a journal entry to reclassify them to an intangible asset account and/or expense account. (b). Prepare a journal entry to record amortization expense as of December 31, 2021.
Among the assets of Lucas Company on December 31, 2021 are the following:Land held for long-term capital appreciation 3,500,000Land held for a currently undetermined future use 5,700,000Building included in inventory 16,600,000Land held for long-term speculation 1,400,000Equipment leased out under an operating lease 500,000Building rented out under finance lease 10,900,000Land owned by the entity and leased out under an operating lease 7.800,000Building owned by the entity and leased out under operating lease 11,800,000Land held for future site 5,600,000Building that is currently vacant but is held to…
Present the assets in the statement of financial position on December 31, 2020.
Presented below is information related to equipment owned by Marigold Company at December 31, 2025. Cost $9,360,000 Accumulated depreciation to date 1,040,000 Expected future net cash flows 7,280,000 Fair value 4,992,000 Assume that Marigold will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years. (a) 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 eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer
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The goodwill of DD was due to the acquisition of P on December 1, 2022. The carrying amount and fair value of the assets and liabilities of Puppy as of the date of acquisition were as follows: Accounts Carrying Amount Fair Value Cash P50,000 P50,000 Accounts receivable 500,000 500,000 Inventory 1,000,000 1,500,000 Investment property 0 350,000 Property, plant and equipment 2,000,000 3,150,000 Liabilities 2,000,000 2,000,000 The bookkeeper of DD recorded goodwill at the excess of purchase price over the book value of the net assets of P at P1,850,000. How much should DD report goodwill as of December 31, 2022?