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Show Attempt History Current Attempt in Progress Presented below is information related to equipment owned by Marigold Company at December 31, 2025. $9,360,000 1,040,000 Cost Accumulated depreciation to date Expected future net cash flows Fair value 7,280,000 4,992,000 Assume that Marigold will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years.

Show Attempt History Current Attempt in Progress Presented below is information related to equipment owned by Marigold Company at December 31, 2025. $9,360,000 1,040,000 Cost Accumulated depreciation to date Expected future net cash flows Fair value 7,280,000 4,992,000 Assume that Marigold will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 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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Show Attempt History Current Attempt in Progress Presented below is information related to equipment owned by Marigold Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,360,000 1,040,000 7,280,000 4,992,000 Assume that Marigold will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years.
Transcribed Image Text:Show Attempt History Current Attempt in Progress Presented below is information related to equipment owned by Marigold Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,360,000 1,040,000 7,280,000 4,992,000 Assume that Marigold will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years.
Your answer is incorrect. The fair value of the equipment at December 31, 2026, is $5,304,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (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 Accumulated Depreciation - Equipment Dec. 31 Recovery of Loss from Impairment Debit 998,400 Credit 998,400
Transcribed Image Text:Your answer is incorrect. The fair value of the equipment at December 31, 2026, is $5,304,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (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 Accumulated Depreciation - Equipment Dec. 31 Recovery of Loss from Impairment Debit 998,400 Credit 998,400
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