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Presented below is information related to equipment owned by Kingbird Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value Assume that Kingbird will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 4 years. (a) $10.890.000 1,210,000 8,470,000 5,808,000 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) Date Account Titles and Explanation Dec. 31 Debit Credit

Presented below is information related to equipment owned by Kingbird Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value Assume that Kingbird will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 4 years. (a) $10.890.000 1,210,000 8,470,000 5,808,000 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) Date Account Titles and Explanation Dec. 31 Debit Credit

FINANCIAL ACCOUNTING
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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O Presented below is information related to equipment owned by Kingbird Company at December 31, 2025. $10,890,000 1,210,000 Cost Accumulated depreciation to date Expected future net cash flows Fair value (a) Assume that Kingbird will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 4 years. (a) 8,470,000 5,808,000 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) Dec. 31 Date Account Titles and Explanation Dec. 31 Show Transcribed Text Debit G 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 Credit Debit Credit
Transcribed Image Text:O Presented below is information related to equipment owned by Kingbird Company at December 31, 2025. $10,890,000 1,210,000 Cost Accumulated depreciation to date Expected future net cash flows Fair value (a) Assume that Kingbird will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 4 years. (a) 8,470,000 5,808,000 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) Dec. 31 Date Account Titles and Explanation Dec. 31 Show Transcribed Text Debit G 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 Credit Debit Credit
Vaughn Company owns equipment that cost $1,035,000 and has accumulated depreciation of $437,000. The expected future net cash flows from the use of the asset are expected to be $575,000. The fair value of the equipment is $460,000. Prepare the journal entry, if any, to record the impairment loss. (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.) Account Titles and Explanation Debit Credit
Transcribed Image Text:Vaughn Company owns equipment that cost $1,035,000 and has accumulated depreciation of $437,000. The expected future net cash flows from the use of the asset are expected to be $575,000. The fair value of the equipment is $460,000. Prepare the journal entry, if any, to record the impairment loss. (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.) Account Titles and Explanation Debit Credit
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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