Presented below is information related to equipment owned by Blue Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,980,000 1,220,000 8,540,000 5,856,000 Blue intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. As of December 31, 2025, the equipment has a remaining useful life of 5years.
Presented below is information related to equipment owned by Blue Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,980,000 1,220,000 8,540,000 5,856,000 Blue intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. As of December 31, 2025, the equipment has a remaining useful life of 5years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Presented below is information related to equipment owned by Blue Company at December 31, 2025.
Cost
Accumulated depreciation to date
Expected future net cash flows
Fair value
$10,980,000
1,220,000
8,540,000
5,856,000
Blue intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. As of December
31, 2025, the equipment has a remaining useful life of 5years.
Transcribed Image Text:(b)
Prepare the journal entry (if any) to record depreciation expense for 2026. (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.)
Account Titles and Explanation
Debit
Credit
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