Sheridan Company purchased equipment in 2019 at a cost of $917000. Two years later it became apparent to Sheridan Company that this equipment had suffered an impairment of value. In early 2021, the book value of the asset is $588000 and it is estimated that the fair value is now only $357000. The entry to record the impairment is

Q: 2. On May 11, 2019, PT Aria Jaya paid €3 400,000 to acquire all of the ordinary shares of PT Hamida,…

A: Journal Entries at the end of 2019: (1) Amortisation expense Account             Dr $2,50,00,000…

Q: On December 31, 2021, Plattsville Plastics recently decided to dispose of an extrusion machine. The…

A: The objective of the question is to determine the correct adjusting entry for the disposal of an…

Q: ABC Corporation has a piece of equipment that cost $500,000 and was placed in service on January 1,…

A: The journal entries are prepared to record the transactions on regular basis. The accumulated…

Q: Adam, Inc. purchased equipment in 2021 at a cost of $600,000. Two years later it became apparent to…

A: Impairment loss refers to the reduction in the value of an asset on a company's balance sheet when…

Q: Martinez Company owns equipment that cost $1,053,000 and has accumulated depreciation of $444,600.…

A: Computation of impairment loss:

Q: On December 31, 2022, Belt Enterprises must measure its impairment loss for plant and equipment.…

A: Impairment loss occurs when the carrying value of an asset is higher than the recoverable value of…

Q: Jackson Company purchased $50,000 in equipment on July 1, 2021. The equipment had a 10-year useful…

A: Net income is the amount of total revenue which is left over after deducting all the expenses…

Q: Jurassic Company owns equipment that cost $900,000 and has accumulated depreciatio flows from the…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: On January 1, 2013, Laity Company purchased a patent with a cost of P5,200,000 and a useful life of…

A: An impairment loss shall be when the carrying amount of the asset exceeds its recoverable amount…

Q: What is the amount of revaluation surplus reported in equity on December 31, 2022?

A: Answer: To calculate the amount of revaluation surplus reported in equity on December 31, 2022, we…

Q: Probst Company acquired a trademark several years ago at a cost of $60,000. Probst has never…

A: GAAP stands for Generally Accepted Financial Practices, and it's based in the U.S. IFRS is a set of…

Q: At 30 June 2019, there was an indication that Modern Machineries Ltd's machinery might be impaired.…

A: Carrying Amount = Cost of asset - Accumulated depreciation = $925,000 - $300,000 = $625,000…

Q: Sunland Company purchased a machine on January 1, 2016, for $820000. At the date of acquisition, the…

A: Depreciation is the reduction in the value of the asset over a particular period. One of the methods…

Q: THE FOLLOWING INFORMATION RELATES TO Q 16 to Q 18 On 1 January 2020, the following information is…

A: The loss on impairment is calculated as the difference between the carrying amount of the asset and…

Q: On December 31, 2020, MECH COMPAY’S only building has a carrying amount of P1,350,000. The net…

A: Impairment loss=1350000-950000=400000

Q: Shamrock Inc. owns equipment that cost $470,000 and has accumulated depreciation of $122,000. The…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: Presented below is information related to equipment owned by Coronado Company at December 31, 2020.…

A: Recovery of impairment loss = Fair value on December 31, 2021 - Fair value on December 31, 2020 =…

Q: On January 1, 2021, an impairment test was conducted by Jess Co. on its Radio Equipment which has an…

A: Carrying value of equipment = Cost  - Accumulated depreciation  = P1,000,000 - P300,000 = P700,000…

Q: salvage value. The Company uses straight-line depreciation. At December 31, 2021 and December 31,…

A: Concept of Impairment of assets

Q: Oriole Company owns equipment that cost $60,900 when purchased on January 1, 2019. It has been…

A: Journal entries are the primary recording of the business transactions in the books of accounts.…

Q: ccount Titles and Explanation Debit Credit enter an account title enter a debit amount enter a…

A: Impairment means to bring the book value of your assets to the fair market value of the asset. The…

Q: An equipment had a cost of $900,000 with a depreciation amount of $400,000 as at December 31, 2019.…

A: A fixed asset is impaired if the carrying value of the asset is less than the value in use. Book…

Q: Lincon Company owned a building on January 01, 2019, with historical cost of P52,000,000. The…

A: A revaluation excess is a type of equity account that records any gains in the value of capital…

Q: On October 1, 2021, Hess Company places a new asset into service. The cost of the asset is $120,000…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: A building owned by Cake Corporation had suffered impairment in value, and an impairment loss of…

A: Impairment of an asset If the carrying value of an asset is more than the recoverable value then…

Q: What is the debit amount for the depreciation expense? What is the credit amount for accumulated…

A: Depreciation expenses is the amount of an asset's cost that has been allocated and reported as an…

Q: On January 1, 2022, Sheridan Corporation acquired equipment at a cost of $777000. Sheridan adopted…

A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…

Q: Impairment Loss of HRS

A: Impairment is the loss in the value of asset .  It is pertinent to note that impairment loss is…

Q: Instructions: 1. Prepare the journal entry (if any) to record the impairment of the asset at…

A: According to U.S. GAAP, Impairment of the asset is judged on the basis of two steps: 1.…

Q: Michael Company acquired a depreciable asset at the beginning of 2020 at a cost of $30 million. On…

A: Lets understand the basics. As per IAS 36 "Impairment of assets", when carrying value of asset is…

Q: There is no change in the asset's useful life or salvage value. The 2021 income statement will…

A: Impairment Loss is the difference between Carrying Amount and Recoverable Amount.  Recoverable…

Q: Coronado Inc. purchased equipment for $1404000 in 2025. Three years later, the equipment has…

A: Impairment loss is done when carrying value of asset is higher than recoverable value of asset.…

Q: After recording depreciation for the current year, Media Mania Incorporated decided to discontinue…

A: Loss on impairment = carrying value - Recoverable amount Where, Recoverable amount = Lower of fair…

Q: Cullumber Co. purchased machinery that cost $3600000 on January 4, 2019. The entire cost was…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: Tamarisk Inc. owns equipment that cost $ 638,000 and has accumulated depreciation of $ 165,000. The…

A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, The…

Q: Questions 9 through 12 are based on the following information: On January 1, 2021, Bida-bida Corp.…

A: Lets understand the basics. Impairement is happen when carrying value of asset is less than…

Q: Sage Hill Inc. owns equipment that cost $594,000 and has accumulated depreciation of $154,000. The…

A: Impairment loss occurs when the carrying value is less than the recoverable amount.

Q: On January 1, 2019, Uptown Builders purchased a machine for $200,000.  Uptown's policy is to…

A: Depreciation under Straight line method is computed in the following manner:  Depreciation = (Cost…