Concord Company owns equipment that cost $945,000 and has accumulated depreciation of $399,000. The expected future net cash flows from the use of the asset are expected to be $575,000. The fair value of the equipment is $420,000. 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)
Concord Company owns equipment that cost $945,000 and has accumulated depreciation of $399,000. The expected future net cash flows from the use of the asset are expected to be $575,000. The fair value of the equipment is $420,000. 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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concord Company owns equipment that cost $945,000 and has accumulated depreciation of $399,000. The expected future net cash
flows from the use of the asset are expected to be $575,000. The fair value of the equipment is $420,000.
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
Loss on impairment
Accumulated Depreciation Equipment
Debit
126000
Credit
126000
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