ation to date disposal €10,620,000 1,180,000 8,260,000 5,192,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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![Presented below is information related to equipment owned by Oriole SpA at December 31, 2022.
Cost
Accumulated depreciation to date
Value-in-use
Fair value less cost of disposal
(a)
€10,620,000
Oriole intends to dispose of the equipment in the coming year. As of December 31, 2022, the equipment has a remaining useful life
of 4 years.
Date
1,180,000
Dec. 31
8,260,000
5,192,000
Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2022. (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.)
Account Titles and Explanation
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe17b9f64-47b8-405b-a56c-289d3db4ba38%2F8a587ca5-b5fc-4d20-871d-a92aa0c1ba72%2Fe8c215j_processed.png&w=3840&q=75)
Transcribed Image Text:Presented below is information related to equipment owned by Oriole SpA at December 31, 2022.
Cost
Accumulated depreciation to date
Value-in-use
Fair value less cost of disposal
(a)
€10,620,000
Oriole intends to dispose of the equipment in the coming year. As of December 31, 2022, the equipment has a remaining useful life
of 4 years.
Date
1,180,000
Dec. 31
8,260,000
5,192,000
Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2022. (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.)
Account Titles and Explanation
Debit
Credit
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