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Information on three plant assets currently held for sale follows.

Information on three plant assets currently held for sale follows.

FINANCIAL ACCOUNTING
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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Information on three plant assets currently held for sale follows. Plant Asset Original Cost Accumulated Depreciation Fair Value Selling Costs # 101 $11,000 $500 #102 60,000 3,000 # 103 80,000 8,000 Plant Asset # 101 # 102 # 103 $50,000 88,000 176,000 Required a. Which plant asset(s), if any, requires an impairment loss to be recognized, and for what amount? • Note: Include a negative sign with a loss. $ Loss 0 (3,000) * 0 x $40,000 17,600 88,000 b. Record the journal entry for the impairment loss (if any). Account Record the impairment loss. Dr. O O 0 0 Cr. 0 x 0 x
Transcribed Image Text:Information on three plant assets currently held for sale follows. Plant Asset Original Cost Accumulated Depreciation Fair Value Selling Costs # 101 $11,000 $500 #102 60,000 3,000 # 103 80,000 8,000 Plant Asset # 101 # 102 # 103 $50,000 88,000 176,000 Required a. Which plant asset(s), if any, requires an impairment loss to be recognized, and for what amount? • Note: Include a negative sign with a loss. $ Loss 0 (3,000) * 0 x $40,000 17,600 88,000 b. Record the journal entry for the impairment loss (if any). Account Record the impairment loss. Dr. O O 0 0 Cr. 0 x 0 x
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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