Sheridan Company owns equipment that cost $963,000 and has accumulated depreciation of $406,600. The expected future net cash flows from the use of the asset are expected to be $585,000. The fair value of the equipment is $428,000. 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 Loss on Impairment Accumulated Depreciation Equipment eTextbook and Media Debit 128400 Credit 128400
Sheridan Company owns equipment that cost $963,000 and has accumulated depreciation of $406,600. The expected future net cash flows from the use of the asset are expected to be $585,000. The fair value of the equipment is $428,000. 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 Loss on Impairment Accumulated Depreciation Equipment eTextbook and Media Debit 128400 Credit 128400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution and formulae in image format..thanku
Transcribed Image Text:Sheridan Company owns equipment that cost $963,000 and has accumulated depreciation of $406,600. The expected future net cash
flows from the use of the asset are expected to be $585,000. The fair value of the equipment is $428,000.
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 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
Loss on Impairment
Accumulated Depreciation Equipment
eTextbook and Media
Debit
128400
Credit
128400
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