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Presented below is information related to equipment owned by Waterway Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,710,000 1,190,000 8,330,000 5,712,000 Waterway intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,800. As of December 31, 2025, the equipment has a remaining useful life of 4 years.

Presented below is information related to equipment owned by Waterway Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,710,000 1,190,000 8,330,000 5,712,000 Waterway intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,800. As of December 31, 2025, the equipment has a remaining useful life of 4 years.

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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Oo.181.

Subject  :- Account 

Presented below is information related to equipment owned by Waterway Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value (a) Your answer is correct. (b) Waterway intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,800. As of December 31, 2025, the equipment has a remaining useful life of 4 years. Date 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.) Loss on Impairment > Show Transcribed Text $10,710,000 Account Titles and Explanation X Your answer is incorrect. 1,190,000 8,330,000 Accumulated Depreciation - Equipment Account Titles and Explanation 5,712,000 Depreciation Expense Accumulated Depreciation - Equipment J Ć Debit 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.) Debit 3.831.800 1,428,000 Credit Credit 3,831,800 1,428,000
Transcribed Image Text:Presented below is information related to equipment owned by Waterway Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value (a) Your answer is correct. (b) Waterway intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,800. As of December 31, 2025, the equipment has a remaining useful life of 4 years. Date 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.) Loss on Impairment > Show Transcribed Text $10,710,000 Account Titles and Explanation X Your answer is incorrect. 1,190,000 8,330,000 Accumulated Depreciation - Equipment Account Titles and Explanation 5,712,000 Depreciation Expense Accumulated Depreciation - Equipment J Ć Debit 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.) Debit 3.831.800 1,428,000 Credit Credit 3,831,800 1,428,000
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