The information that follows relates to equipment owned by Buffalo Limited at December 31, 2023: Cost Accumulated depreciation to date $4,320,000 480,000 Expected future net cash flows (undiscounted) 3,360,000 Expected future net cash flows (discounted, value in use) 3,048,000 Fair value 2,976,000 Costs to sell (costs of disposal) 24,000 Assume that Buffalo will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Buffalo uses the straight-line method of depreciation. Assume that Buffalo is a private company that follows ASPE. (a) (b) Prepare the journal entry to record depreciation expense for 2024. (Credit account titles are automaticall

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The information that follows relates to equipment owned by Buffalo Limited at December 31, 2023:
Cost
Accumulated depreciation to date
$4,320,000
480,000
Expected future net cash flows (undiscounted)
3,360,000
Expected future net cash flows (discounted, value in use)
3,048,000
Fair value
2,976,000
Costs to sell (costs of disposal)
24,000
Assume that Buffalo will continue to use this asset in the future. As at December 31, 2023, the equipment has a
remaining useful life of four years. Buffalo uses the straight-line method of depreciation. Assume that Buffalo is a
private company that follows ASPE.
(a)
(b)
Prepare the journal entry to record depreciation expense for 2024. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.)
Date
Account Titles and Explanation
December
31, 2024
Debit
Cre
Transcribed Image Text:The information that follows relates to equipment owned by Buffalo Limited at December 31, 2023: Cost Accumulated depreciation to date $4,320,000 480,000 Expected future net cash flows (undiscounted) 3,360,000 Expected future net cash flows (discounted, value in use) 3,048,000 Fair value 2,976,000 Costs to sell (costs of disposal) 24,000 Assume that Buffalo will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Buffalo uses the straight-line method of depreciation. Assume that Buffalo is a private company that follows ASPE. (a) (b) Prepare the journal entry to record depreciation expense for 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation December 31, 2024 Debit Cre
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