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The information that follows relates to equipment owned by Waterway Limited at December 31, 2023: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) Fair value Costs to sell (costs of disposal) $3,510,000 390,000 2,730,000 2,476,500 2,418,000 19,500 Assume that Waterway will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Waterway uses the straight-line method of depreciation. Assume that Waterway is a private company that follows ASPE

The information that follows relates to equipment owned by Waterway Limited at December 31, 2023: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) Fair value Costs to sell (costs of disposal) $3,510,000 390,000 2,730,000 2,476,500 2,418,000 19,500 Assume that Waterway will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Waterway uses the straight-line method of depreciation. Assume that Waterway is a private company that follows ASPE

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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Current Attempt in Progress The information that follows relates to equipment owned by Waterway Limited at December 31, 2023: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) Fair value Costs to sell (costs of disposal) $3,510,000 390,000 2,730,000 2,476,500 2,418,000 19,500 Assume that Waterway will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Waterway uses the straight-line method of depreciation. Assume that Waterway is a private company that follows ASPE
Transcribed Image Text:Current Attempt in Progress The information that follows relates to equipment owned by Waterway Limited at December 31, 2023: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) Fair value Costs to sell (costs of disposal) $3,510,000 390,000 2,730,000 2,476,500 2,418,000 19,500 Assume that Waterway will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Waterway uses the straight-line method of depreciation. Assume that Waterway is a private company that follows ASPE
(a) Your answer is partially correct. Prepare the journal entry at December 31, 2023, to record asset impairment, if any. (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.) Account Titles and Explanation Loss on impairment Date December 31, 2023 Accumulated Impairment Losses-Equipment Debit 721500 Credit 721500
Transcribed Image Text:(a) Your answer is partially correct. Prepare the journal entry at December 31, 2023, to record asset impairment, if any. (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.) Account Titles and Explanation Loss on impairment Date December 31, 2023 Accumulated Impairment Losses-Equipment Debit 721500 Credit 721500
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