Crane Corporation owns machinery with a book value of $574000. At fiscal year-end 2026, is estimated that the machinery will generate future cash flows of $612000. If the machinery has a fair value of $435000 at that time, Crane should recognize a loss on impairment of O $0. O $177000. O $153000. O $38000.
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- Bramble Corp. owns machinery with a book value of $582000. It is estimated that the machinery will generate future cash flows of $601000. The machinery has a fair value of $417000. Bramble should recognize a loss on impairment of $184000. $150250. $19000. $ -0-.Coronado Industries owns machinery with a book value of $566000. It is estimated that the machinery will generate future cash flows of $615000. The machinery has a fair value of $429000. Coronado should recognize a loss on impairment of $49000. $186000. $ -0-. $153750.Crane Company owns machinery with a book value of $750000. It is estimated that the machinery will generate future cash flows of $690000. The machinery has a fair value of $550000. Crane should recognize a loss on impairment of $200000. a. $ -0-. b. $140000. c. $60000.
- King Corp owns machinery with a book value of $760k. It is estimated that the machinery will generate future cash flows of $700k. The machinery has a fair value of $560k. King should recognize a loss on impairement of: a.) $140k b.) $200k c.) $60k d.) $0Concord Corporation owns machinery with a book value of $563000. It is estimated that the machinery will generate future cash flows of $608000. The machinery has a fair value of $425000. Concord should recognize a loss on impairment of?Presented below is information related to equipment owned by Swifty Company at December 31, 2020. Cost $ 9,270,000 Accumulated depreciation to date 1,030,000 Expected future net cash flows 7,210,000 Fair value 4,944,000 Assume that Swifty 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 $ 5,253,000. 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.)
- Swifty Corporation owns machinery with a book value of $575000. It is estimated that the machinery will generate future cash flows of $607000. The machinery has a fair value of $429000. Swiftyshould recognize a loss on impairment of $151750. $ -0-. $178000. $32000.On Jan. 1, 2020, ABC Corporation purchased an equipment with acost of P4,400,000. The equipment has a 6‐year life and a residualvalue Of P200,000. It is depreciated using the sum‐of‐years digitsmethod. On Jan. 1, 2024, ABC determined that the equipment is impaired. Itsfair value less cost to dispose is P750,000. Net annual cashflowsfrom its use is P400,000 for the remaining useful life. Theappropriate discount rate is 7%. Compute for the following:6. Carrying value of the equipment before impairment7. Value in use of the equipment8. Impairment loss on Jan. 1, 20249. Carrying value of the equipment on Dec. 31, 2024Cullumber 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.
- 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 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 EPresented below is information related to equipment owned by Davis Company at December 31, 2020. Cost Accumulated Depreciation to date Expected future net cash flows (undiscounted) Fair value $7,750,000 750,000 Instructions: 6,250,000 6,600,000 Assume that Davis intends to dispose of the asset in the coming year. It is expected the cost of disposal will be $15,000. As of December 31, 2020, the equipment has a remaining useful life of 5 years. 1. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. 2. Prepare the iournal entry to record depreciation expense for