3 PRESENTED BELOW IS INFORMATION RELATED TO EQUIPMENT OWNED BY SUAREZ COMPANY AT 4 DECEMBER 31, 2018. ASSUME THAT SUAREZ WILL CONTINUE TO USE THIS ASSET IN THE FUTURE. AS OF DECEMBER 31, 2018, THE EQUIPMENT HAS A REMAINING USEFUL LIFE OF 4 YEARS. 6. 7 CARRYING AMOUNT (COST $120,000, ACC DEP $30,000) 90,000 8 EXPECTED FUTURE NET CASH FLOWS 80,000 9 FMV 60,000 10 11 REQUIRED: 12 A. PREPARE THE JOURNAL ENTRY, IF ANY, TO RECORD THE IMPAIRMENT OF THE ASSET AT 12/31/2018. 13 B. PREPARE THE JOURNAL ENTRY TO RECORD DEPRECIATION EXPENSE FOR 2019. 14 C. THE FMV OF THE EQUIPMENT AT 12/31/2019 IS $100,000. PREPARE THE JOURNAL ENTRY, IF ANY, TO 15 RECORD THIS INCREASE IN FMV. 16

3 PRESENTED BELOW IS INFORMATION RELATED TO EQUIPMENT OWNED BY SUAREZ COMPANY AT 4 DECEMBER 31, 2018. ASSUME THAT SUAREZ WILL CONTINUE TO USE THIS ASSET IN THE FUTURE. AS OF DECEMBER 31, 2018, THE EQUIPMENT HAS A REMAINING USEFUL LIFE OF 4 YEARS. 6. 7 CARRYING AMOUNT (COST $120,000, ACC DEP $30,000) 90,000 8 EXPECTED FUTURE NET CASH FLOWS 80,000 9 FMV 60,000 10 11 REQUIRED: 12 A. PREPARE THE JOURNAL ENTRY, IF ANY, TO RECORD THE IMPAIRMENT OF THE ASSET AT 12/31/2018. 13 B. PREPARE THE JOURNAL ENTRY TO RECORD DEPRECIATION EXPENSE FOR 2019. 14 C. THE FMV OF THE EQUIPMENT AT 12/31/2019 IS $100,000. PREPARE THE JOURNAL ENTRY, IF ANY, TO 15 RECORD THIS INCREASE IN FMV. 16

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

See similar textbooks

Related questions

Q: If the government allows firms to immediately expense all investments in assets, capital projects…

A: NPV: It is the present value today for the project considering the annual cash flows and the initial…

Q: The raludion that manukactureu Should not market a new frodeet that il i legally Simikar ta that of…

A: Patent is an exclusive right to a product or a process that generally provides a new way of doing…

Q: %24 %24 %24 %24 %24 geNOWv2 | Online teachin X…

A: Formula: Interest = Principal x Interest rate x Time / 360 days

Q: The following information is available for Lagakos Corporation for 2018: January 1 $50,100 December…

A: Cost of goods manufactured is the statement which is prepared to compute the costs incurred on the…

Q: The principles of internal control include Multiple Choice 0 Separate recordkeeping from custody of…

A: Internal controls are designed and implemented in an entity’s business to identify and mitigate…

Q: Content * CengageNOWv2 On x Forms By Mail |USCIS X + Home USCIS 53'F…

A: Internal Control: Internal controls are the components, rules, and systems executed by an…

Q: Current Attempt in Progress Ritter Advertising Company's trial balance at December 31 shows Supplies…

A: Adjusting entries are those journal entries which are passed at the end of the period in order to…

Q: Tota 21 22 23 24 25 22 of 45 All Choose the best option O Assets, liabilities, and equity are…

A: Basic accounting equation Assets =Laibilties +Equity

Q: NK NK Bro 19:07 Upvotes not added 19:07 March 15 000 Which 20:59 Which I was taken mrng 21:00 Bro…

A: What's the question?

Q: PA9. 11.4 For each of the following unrelated situations, calculate the annual amortization expense…

A: Amortization refers to the allocation of the cost of an intangible asset over the useful life of…

Q: Your next-door neighbor recently began a new job as assistant controller for Conundrum Corporation.…

A: Variance analysis :Variance analysis is an analysis of the difference between planned and actual…

Q: s all of the lar s advance pay

A: General Journal Date…

Q: MITS MIGH W33 Across 4. Set of accounting standards that have authoritative support 8. Land lease,…

A: Increase in assets or decrease in liabilities both refer to an improvement in a company's financial…

Q: PR 14-4A Entries for bonds payable and installment note transactions The following transactions were…

A: ANSWER:- 1. JOURNAL ENTRIES Date Account Titles…

Q: Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $1,630,000…

A: With the passage of time, the value of assets goes on decreasing due to various reasons such as…

Q: Finished goods, June 30: P 63,000, December 31: P 73,000) Work-in-process, June 30: P 12,000,…

A: Cost of Goods Sold The "direct cost" incurred in the manufacturing of any products or services is…

Q: Coronado Company sells one product. Presented below is information for January for Coronado Company.…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: s NOT contained in an effective annual report

A: Option b is wrong because auditor's statement of independence and adherence to accepted accounting…

Q: Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of…

A: Double Decline Method: To accelerate depreciation, use the double-declining-balance technique, which…

Q: The usual sequence of steps in the transaction recording process is: journal ledger → analyze.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: ples. assets. Company, organized in 2020, has the following transactions related to intangible…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Bookmarks Window Help Tue May 4 4:20 PM a edugen.wileyplus.com SOFTWARE UPDATE 25m ago Return to…

A: Payroll tax expense is charged on the payroll payments made by the employer, this tax has been…

Q: M Federal Financial Aid P x Students Home Ch. 7 Quiz: Invoices, Tr X A Ch. 7 Quiz: Invoices, Tr X W…

A: An invoice is a payment request sent by the supplier that lists the goods or services provided to…

Q: On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a…

A: It should be record at present value because payment period is more than 1 year.…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Good morning

August 24

3
PRESENTED BELOW IS INFORMATION RELATED TO EQUIPMENT OWNED BY SUAREZ COMPANY AT
4
DECEMBER 31, 2018. ASSUME THAT SUAREZ WILL CONTINUE TO USE THIS ASSET IN THE FUTURE.
AS OF DECEMBER 31, 2018, THE EQUIPMENT HAS A REMAINING USEFUL LIFE OF 4 YEARS.
6.
7
CARRYING AMOUNT (COST $120,000, ACC DEP $30,000)
90,000
8
EXPECTED FUTURE NET CASH FLOWS
80,000
9
FMV
60,000
10
11
REQUIRED:
12
A. PREPARE THE JOURNAL ENTRY, IF ANY, TO RECORD THE IMPAIRMENT OF THE ASSET AT 12/31/2018.
13
B. PREPARE THE JOURNAL ENTRY TO RECORD DEPRECIATION EXPENSE FOR 2019.
14
C. THE FMV OF THE EQUIPMENT AT 12/31/2019 IS $100,000. PREPARE THE JOURNAL ENTRY, IF ANY, TO
15
RECORD THIS INCREASE IN FMV.
16

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Presented below is information related to equipment owned by Novak Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $11,250,000 1,250,000 8,750,000 Dec. 31 6,000,000 Novak intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $25,000. As of December 31, 2025, the equipment has a remaining useful life of 4 years. The asset was not sold by December 31, 2026. The fair value of the equipment on that date is $6,625,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $25,000. (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 Debit Credit
Just need help with part C
please dont provide solution in an image format thnku
Presented below is information related to equipment owned by Nash Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value (a) $6,270,000 Date Assume that Nash will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 4 years and no salvage value. Your answer is partially correct. 750,000 December 4,810,000 3,320,000 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.) Account Titles and Explanation Debit Credit E
Presented below is information related to equipment owned by Vaughn Company at December 31, 2020. Cost $10,350,000 Accumulated depreciation to date 1,150,000 Expected future net cash flows 8,050,000 Fair value 5,520,000 Assume that Vaughn will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. The fair value of the equipment at December 31, 2021, is $5,865,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the transaction on December 31, 2018 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2018…
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
Presented below is information related to equipment owned by Sunland Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value (a) $10,170,000 Sunland intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,600. As of December 31, 2025, the equipment has a remaining useful life of 4 years. 1,130,000. 7,910,000 5,424,000 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.) Dec. 31 Date Account Titles and Explanation Debit Credit
please answer do not image.
Please include all the calculations for my reference. Thanks!
Munabhai
A P1, 500, 000.00 equipment has an estimated life of 20 years with a book value of P 250, 000.00 at the end of the period. What is the depreciation charge and its book value after 10 years using the sinking fund method? i= 8% Given: Required: Solution: refer to this textbook: https://drive.google.com/file/d/16J6M6RHBZ22NDaog_9DSXMgYb4qFu7T3/view?usp=sharing
Presented below is information related to equipment owned by Novak Company at December 31, 2025. Cost $6,820,000 Accumulated depreciation to date 670,000 Expected future net cash flows 4,730,000 Fair value 3,430,000 Assume that Novak will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 4 years and no salvage value. (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 December 31, 2025 Account Titles and Explanation Debit Credit I