On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment. Delater has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or par Plant and Equipment $ (2,145,000) 1,230,000 $ (915,000) Carrying value Less: Fair value Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then c December 31, 2022 2,145,000 915,000 Account Accumulated Depreciation-Plant and Equipment Impairment Loss on Plant and Equipment Plant and Equipment Determine the revised annual depreciation expense The annual depreciation expense is $ 410,000. 3,060,000 Data table Cost Less: Accumulated Depreciation/Amortization Carrying value Future cash flows (occurring at the end of each year) Remaining Life 1 2 3 4 5 6 Total undiscounted future cash flows Total discounted future cash flows at 5% Fair value Plant and Equipment Asset Group $ $ Year 2023 $ 2024 2025 2026 2027 2028 $ $ $ 4,290,000 (2,145,000) 2,145,000 700,000 470,000 381,000 0 0 0 1,551,000 1,422,093 1,230,000 -X

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment. Delater has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted
cash flows, and fair values of the plant and equipment are listed below:
(Click the icon to view the cash flows and fair values.)
Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment.
Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or par
Plant and
Equipment
Carrying value
Less: Fair value
Impairment Loss
Next, prepare the journal entry necessary to record the impairment. (Record debits first, then c
December 31, 2022
2,145,000
915,000
$ (2,145,000)
1,230,000
$ (915,000)
Account
Accumulated Depreciation Plant and Equipment
Impairment Loss on Plant and Equipment
Plant and Equipment
Determine the revised annual depreciation expense.
The annual depreciation expense is $ 410,000
3,060,000
Data table
Cost
Less: Accumulated Depreciation/Amortization
Carrying value
Future cash flows (occurring at the end of
each year)
Remaining Life
Fair value
1
2
3
4
5
6
Total undiscounted future cash flows
Total discounted future cash flows at 5%
Year
2023
2024
2025
2026
2027
2028
Plant and Equipment
Asset Group
$
$
$
$
$
$
4,290,000
(2,145,000)
2,145,000
700,000
470,000
381,000
0
0
0
1,551,000
1,422,093
1,230,000
X
Transcribed Image Text:On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment. Delater has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or par Plant and Equipment Carrying value Less: Fair value Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then c December 31, 2022 2,145,000 915,000 $ (2,145,000) 1,230,000 $ (915,000) Account Accumulated Depreciation Plant and Equipment Impairment Loss on Plant and Equipment Plant and Equipment Determine the revised annual depreciation expense. The annual depreciation expense is $ 410,000 3,060,000 Data table Cost Less: Accumulated Depreciation/Amortization Carrying value Future cash flows (occurring at the end of each year) Remaining Life Fair value 1 2 3 4 5 6 Total undiscounted future cash flows Total discounted future cash flows at 5% Year 2023 2024 2025 2026 2027 2028 Plant and Equipment Asset Group $ $ $ $ $ $ 4,290,000 (2,145,000) 2,145,000 700,000 470,000 381,000 0 0 0 1,551,000 1,422,093 1,230,000 X
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