A company had purchased a machinery for $1,000,000 in 2014. The accumulated depreciation to date is $280,000. As of December 2018, the estimated useful life of the asset is 8 years, and the company estimated the fair value of the machine at $600,000. Prepare the journal entry if any, to record the impairment of the asset at December 31, 2018. a. Debit Loss on impairment account for $400,000 and credit the Accumulated depreciation on machinery account for $400,000. b. Debit Loss on impairment account for $120,000 and credit the Accumulated depreciation on machinery account for $120,000. c. Debit Accumulated depreciation on machinery account for $120,000 and credit the Loss on impairment account for $120,000. d. Debit Accumulated depreciation on machinery account for $400,000 and credit the Loss on impairment account for $400,000.

A company had purchased a machinery for $1,000,000 in 2014. The accumulated depreciation to date is $280,000. As of December 2018, the estimated useful life of the asset is 8 years, and the company estimated the fair value of the machine at $600,000. Prepare the journal entry if any, to record the impairment of the asset at December 31, 2018. a. Debit Loss on impairment account for $400,000 and credit the Accumulated depreciation on machinery account for $400,000. b. Debit Loss on impairment account for $120,000 and credit the Accumulated depreciation on machinery account for $120,000. c. Debit Accumulated depreciation on machinery account for $120,000 and credit the Loss on impairment account for $120,000. d. Debit Accumulated depreciation on machinery account for $400,000 and credit the Loss on impairment account for $400,000.

Name: A company had purchased a machinery for $1,000,000 in 2014. The accum
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Description: A company had purchased a machinery for $1,000,000 in 2014. The accumulateddepreciation to date is $280,000. As of December 2018, the estimated useful life of theasset is 8 years, and the company estimated the fair value of the machine at $600,000.P

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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