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The fair value of the equipment at December 31, 2026, is $5,508,000. 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 Dec. 31 Debit Credit

The fair value of the equipment at December 31, 2026, is $5,508,000. 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 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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Presented below is information related to equipment owned by Windsor Company at December 31, 2025. Cost (c) Accumulated depreciation to date Expected future net cash flows Fair value $9,720,000 1,080,000 Assume that Windsor will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years. 7,560,000 5,184,000 The fair value of the equipment at December 31, 2026, is $5,508,000. 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.) Dec. 31 Date Account Titles and Explanation Debit Credit
Transcribed Image Text:Presented below is information related to equipment owned by Windsor Company at December 31, 2025. Cost (c) Accumulated depreciation to date Expected future net cash flows Fair value $9,720,000 1,080,000 Assume that Windsor will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years. 7,560,000 5,184,000 The fair value of the equipment at December 31, 2026, is $5,508,000. 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.) Dec. 31 Date Account Titles and Explanation Debit Credit
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