Presented below is information related to equipment owned by Bramble Company at December 31, 2025.CostAccumulated depreciation to date.Expected future net cash flowsFair value$10,260,000(a)1.140,0007,980,0005,472,000Assume that Bramble will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful lifeof 5 years.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 0 for the amounts. Credit account titles are automatically indented whenamount is entered. Do not indent manually. List debit entry before credit entry.)ternunt Titles and FynlanationDebitCreditSUPPORT

Name: Presented below is information related to equipment owned by Bramble
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Description: Presented below is information related to equipment owned by Bramble Company at December 31, 2025.CostAccumulated depreciation to date.Expected future net cash flowsFair value$10,260,000(a)1.140,0007,980,0005,472,000Assume that Bramble will continue

Impairment refers to a significant, permanent reduction in the recoverable amount of an asset below…

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Accounting

Presented below is information related to equipment owned by Bramble Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,260,000 1.140,000 7,980,000 5,472,000 Assume that Bramble will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years (a) 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Debit Credit SUPPORT

Presented below is information related to equipment owned by Bramble Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,260,000 1.140,000 7,980,000 5,472,000 Assume that Bramble will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years (a) 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Debit Credit SUPPORT

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

Presented below is information related to equipment owned by Bramble Company at December 31, 2025.
Cost
Accumulated depreciation to date.
Expected future net cash flows
Fair value
$10,260,000
(a)
1.140,000
7,980,000
5,472,000
Assume that Bramble will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life
of 5 years.
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 0 for the amounts. Credit account titles are automatically indented when
amount is entered. Do not indent manually. List debit entry before credit entry.)
ternunt Titles and Fynlanation
Debit
Credit
SUPPORT

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