Presented below is information related to equipment owned by Crane Company at December 31, 2025.CostAccumulated depreciation to dateExpected future net cash flowsFair value(a)$9,090,0001,010,000Crane intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,250. As of December31, 2025, the equipment has a remaining useful life of 4 years.7,070,0004,848,000Dec. 31Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (If no entry is required, select "Noentry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do notindent manually. List debit entry before credit entry.)Date Account Titles and ExplanationDebitCredit

Impairment occurs when an asset has a current value below its balance sheet value. There can be…

Answered: Prepare the journal entry (if any) to…

Business

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Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025

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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Question

Presented below is information related to equipment owned by Crane Company at December 31, 2025.
Cost
Accumulated depreciation to date
Expected future net cash flows
Fair value
(a)
$9,090,000
1,010,000
Crane intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,250. As of December
31, 2025, the equipment has a remaining useful life of 4 years.
7,070,000
4,848,000
Dec. 31
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.)
Date Account Titles and Explanation
Debit
Credit

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