The information that follows relates to equipment owned by Sweet Acacia Limited at December 31, 2023: Cost Accumulated depreciation to date $3,600,000 400,000 Expected future net cash flows (undiscounted) 2,800,000 Expected future net cash flows (discounted, value in use) 2,540,000 Fair value 2,480,000 Costs to sell (costs of disposal) 20,000 Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Sweet Acacia uses the straight-line method of depreciation. Assume that Sweet Acacia is a private company that follows ASPE. (c) × Your answer is incorrect. The equipment's fair value at December 31, 2024, is $2.60 million. Prepare the journal entry, if any, to record the increase in fair value. (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 Accumulated Impairment Losses - Equipment 31, 2024 Recovery of Loss from Impairment Debit 495000 Credit 495000

The information that follows relates to equipment owned by Sweet Acacia Limited at December 31, 2023: Cost Accumulated depreciation to date $3,600,000 400,000 Expected future net cash flows (undiscounted) 2,800,000 Expected future net cash flows (discounted, value in use) 2,540,000 Fair value 2,480,000 Costs to sell (costs of disposal) 20,000 Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Sweet Acacia uses the straight-line method of depreciation. Assume that Sweet Acacia is a private company that follows ASPE. (c) × Your answer is incorrect. The equipment's fair value at December 31, 2024, is $2.60 million. Prepare the journal entry, if any, to record the increase in fair value. (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 Accumulated Impairment Losses - Equipment 31, 2024 Recovery of Loss from Impairment Debit 495000 Credit 495000

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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