M&M Inc. was preparing the annual financial statements and, as part of its year-end procedures, prepared the following schedule based on adjusted values at March 31, 2020: Asset Cost Accumulated Recoverable Residual Depreciation Remaining Depreciation Amount Value Method Life Furniture $25,000 $20,000 $10,000 $500 Straight Line 3 years Computer $2,000 $1,000 $500 $- Double 5 years Declining Land $105,000 $- $90,000 N/A N/A Unlimited Machine $90,000 $25,000 $35,000 $5,000 Straight Line 3 years Required I) Record the entry for any impairment loss assuming that M&M recorded no impairment losses in previous years. II) Record the entry for depreciation on each of the assets at March 31, 2020. Assume there was no change in residual or useful lives regardless of impairment losses.
M&M Inc. was preparing the annual financial statements and, as part of its year-end procedures, prepared the following schedule based on adjusted values at March 31, 2020: Asset Cost Accumulated Recoverable Residual Depreciation Remaining Depreciation Amount Value Method Life Furniture $25,000 $20,000 $10,000 $500 Straight Line 3 years Computer $2,000 $1,000 $500 $- Double 5 years Declining Land $105,000 $- $90,000 N/A N/A Unlimited Machine $90,000 $25,000 $35,000 $5,000 Straight Line 3 years Required I) Record the entry for any impairment loss assuming that M&M recorded no impairment losses in previous years. II) Record the entry for depreciation on each of the assets at March 31, 2020. Assume there was no change in residual or useful lives regardless of impairment losses.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:M&M Inc. was preparing the annual financial statements and, as part of its year-end
procedures, prepared the following schedule based on adjusted values at March 31,
2020:
Cost Accumulated Recoverable Residual
Depreciation Remaining
Life
Asset
Depreciation
Amount
Value
Method
Furniture
$25,000
$20,000
$10,000
$500
Straight Line
3 years
Computer
$2,000
$1,000
$500
$-
Double
5 years
Declining
Land
$105,000
$-
$90,000
N/A
N/A
Unlimited
Machine
$90,000
$25,000
$35,000 $5,000
Straight Line
3 years
Required
I) Record the entry for any impairment loss assuming that M&M recorded no
impairment losses in previous years.
II) Record the entry for depreciation on each of the assets at March 31, 2020.
Assume there was no change in residual or useful lives regardless of impairment
losses.
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