Presented below is information related to equipment owned by Bramble Company at December 31, 2020. $10,260,000 1,140,000 7,980,000 5.472.000 Cost Accumulated depreciation to date Expected future net cash flows Fair value Assume that Bramble will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.
Presented below is information related to equipment owned by Bramble Company at December 31, 2020. $10,260,000 1,140,000 7,980,000 5.472.000 Cost Accumulated depreciation to date Expected future net cash flows Fair value Assume that Bramble will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:* Your answer is incorrect.
The fair value of the equipment at December 31, 2021, is $5,814,000. Prepare the journal entry (if any) necessary to record this
increase in fair value. (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.)
Date Account Titles and Explanation
Dec. 31
Debit
Credit
Transcribed Image Text:Presented below is information related to equipment owned by Bramble Company at Decen
Cost
Accumulated depreciation to date
Expected future net cash flows
Fair value
$10,260,000
1,140,000
7,980,000
5,472,000
(a)
December 31, 2020.
Assume that Bramble will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life
of 5 years.
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