Your answer is incorrect. Bramble Company owns equipment that cost $1,026,000 and has accumulated depreciation of $433,200. The expected future net cash flows from the use of the asset are expected to be $620,000. The fair value of the equipment is $456,000. Prepare the journal entry, if any, to record the impairment loss. (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.) Account Titles and Explanation Accumulated Depreciation - Equipment Loss on Impairment d Medi Debit 592800 0 Credit 0 592800

On July 1, 2014, Sunland Enterprises sold equipment with an original cost of $80,700 for $31,300. The equipment was purchased January 1, 2011, and was depreciated using the straight-line method over a five-year useful life with a $8,600 salvage value. Prepare the journal entry to record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit III

On January 1, 2019, Uptown Builders purchased a machine for $200,000.  Uptown's policy is to depreciate this type of machinery using straight-line depreciation, over five years, with no residual value.  Because of a bookkeeping error, no depreciation was recognized in Uptown's 2019 or 2020 financial statements.  The error was discovered during the preparation of the 2021 financial statements.  Ignoring income taxes, the impact of this error on retained earnings prior to any 2021 adjustments is:   Question 8 options:   Overstatement of $80,000   Understatement of $120,000   Understatement of $80,000   Overstatement of $120,000

Gadubhai

(Error and Change in Estimate—Depreciation) Joy Cunningham Co. purchased a machine on January 1, 2015, for $550,000. At that time, it was estimated that the machine would have a 10-year life and no salvage value. On December 31, 2018, the firm’s accountant found that the entry for depreciation expense had been omitted in 2016. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation, starting with the year 2018. At present, the company uses the sum-of-the-years’-digits method for depreciating equipment.InstructionsPrepare the general journal entries that should be made at December 31, 2018, to record these events. (Ignore tax effects.)

Cullumber Corporation owns equipment with a cost of $294900 and accumulated depreciation at December 31 of $152200. It is estimated that the machinery will generate future cash flows of $166600. The machinery has a fair value of $115200. Cullumber should recognize a loss on impairment of O $23900. O $0. O $14400 O $37000.

The Sirap manufacturing Co. bought equipment on 1/4/2018 for $120 M. The machine has an expected useful life of 8 years with no Salvage value. Sirap Co. used the straight line depreciation method for the years 2018, 2019, and 2020. On 1/4/2021 they switched to the Double Declining Balance method. Required: Calculate the depreciation expense for 2021, and prepare the Journal Entry. (Hint: calculate the book value on 1/4/21 using the old method, and then go forward using the new depreciation method.

Concord Corporation bought a machine on January 1, 2011 for $807000. The machine had an expected life of 20 years and was expected to have a salvage value of $77000. On July 1, 2021, the company reviewed the potential of the machine and determined that its future net cash flows totaled $403000 and its fair value was $298000. If the company does not plan to dispose of it, what should Concord record as an impairment loss on July 1, 2021? a. $20750 b. $0 c. $28000 d. $125750

Lou Lou and Company purchased a piece of machinery 2 years ago for $50,000 and has depreciation to date of $15,000. The fair market value of the asset is $30,000, but the company believes it can achieve $34,000 in net future cash flows from the asset. Costs to dispose of the asset is $200. Assuming the asset is held for use, determine if the asset is impaired. If so, what is the amount of the write-off?     The asset is impaired and Lou Lou should record a $1,000 loss on impairment.     The asset is impaired and Lou Lou should record a $5,200 loss on impairment.     The asset is NOT impaired.     The asset is impaired and Lou Lou should record a $5,000 loss on impairment.

Ashvinn