The information that follows relates to equipment owned by Waterway Limited at December 31, 2023: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) Fair value Costs to sell (costs of disposal) $7,020,000 780,000 5,460,000 4,953,000 4,836,000 39,000 Assume that Waterway will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Waterway uses the straight-line method of depreciation.
The information that follows relates to equipment owned by Waterway Limited at December 31, 2023: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) Fair value Costs to sell (costs of disposal) $7,020,000 780,000 5,460,000 4,953,000 4,836,000 39,000 Assume that Waterway will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Waterway uses the straight-line method of depreciation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
The information that follows relates to equipment owned by Waterway Limited at December 31, 2023:
Cost
Accumulated depreciation to date
Expected future net cash flows (undiscounted)
Expected future net cash flows (discounted, value in use)
Fair value
Costs to sell (costs of disposal)
$7,020,000
780,000
5,460,000
4,953,000
4,836,000
39,000
Assume that Waterway will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful
life of four years. Waterway uses the straight-line method of depreciation.
Transcribed Image Text:Repeat the requirements in part (a) above assuming that Waterway is a public company that follows IFRS. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts. List all debit entries before credit entries.)
No. Date
(1)
(2)
(3)
December
31, 2023
December
31, 2024
December
31, 2024
Account Titles and Explanation
Debit
00
Credit
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