Journal entry to record impairment loss. Given information: Estimated fair value is $1,050,000. Present value of benefit is $1,060,000. Accumulated depreciation is $1,280,000. Total cost of asset is $3,200,000.

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Answer 1

Question

Chapter 12, Problem 12.3E

a.

To determine

To prepare: Journal entry to record impairment loss.

Given information:

Estimated fair value is $1,050,000.

Present value of benefit is $1,060,000.

Accumulated depreciation is $1,280,000.

Total cost of asset is $3,200,000.

b.

To determine

To prepare: Journal entry to record revised depreciation expense.

c.

To determine

To calculate: Carrying value of the asset.

Given Information:

Fair value of asset is $725,000.

Undiscounted future cash flow is $745,000.

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Luke Production applies overhead using a normal costing approach based on direct labor-hours. The budgeted factory overhead was $420,000, and the budgeted direct labor-hours were 28,000. The actual factory overhead was $438,900, and the actual direct labor-hours were 29,200. How much overhead would be applied to production?

The Frontier Manufacturing had 7,200 actual direct labor hours at an actual rate of $18.75 per hour. Original production had been budgeted for 950 units, but only 900 units were actually produced. Labor standards were 9.2 hours per completed unit at a standard rate of $17.50 per hour. Compute the direct labor cost variance.

Answer 2

Question

Chapter 12, Problem 12.3E

a.

To determine

To prepare: Journal entry to record impairment loss.

Given information:

Estimated fair value is $1,050,000.

Present value of benefit is $1,060,000.

Accumulated depreciation is $1,280,000.

Total cost of asset is $3,200,000.

b.

To determine

To prepare: Journal entry to record revised depreciation expense.

c.

To determine

To calculate: Carrying value of the asset.

Given Information:

Fair value of asset is $725,000.

Undiscounted future cash flow is $745,000.

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Answer 3

Question

Chapter 12, Problem 12.3E

a.

To determine

To prepare: Journal entry to record impairment loss.

Given information:

Estimated fair value is $1,050,000.

Present value of benefit is $1,060,000.

Accumulated depreciation is $1,280,000.

Total cost of asset is $3,200,000.

b.

To determine

To prepare: Journal entry to record revised depreciation expense.

c.

To determine

To calculate: Carrying value of the asset.

Given Information:

Fair value of asset is $725,000.

Undiscounted future cash flow is $745,000.

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Answer 4

Question

Chapter 12, Problem 12.3E

a.

To determine

To prepare: Journal entry to record impairment loss.

Given information:

Estimated fair value is $1,050,000.

Present value of benefit is $1,060,000.

Accumulated depreciation is $1,280,000.

Total cost of asset is $3,200,000.

b.

To determine

To prepare: Journal entry to record revised depreciation expense.

c.

To determine

To calculate: Carrying value of the asset.

Given Information:

Fair value of asset is $725,000.

Undiscounted future cash flow is $745,000.

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Answer 5

Chapter 12, Problem 12.3E

a.

To determine

To prepare: Journal entry to record impairment loss.

Given information:

Estimated fair value is $1,050,000.

Present value of benefit is $1,060,000.

Accumulated depreciation is $1,280,000.

Total cost of asset is $3,200,000.

b.

To determine

To prepare: Journal entry to record revised depreciation expense.

c.

To determine

To calculate: Carrying value of the asset.

Given Information:

Fair value of asset is $725,000.

Undiscounted future cash flow is $745,000.

Answer 6

Chapter 12, Problem 12.3E

a.

To determine

To prepare: Journal entry to record impairment loss.

Given information:

Estimated fair value is $1,050,000.

Present value of benefit is $1,060,000.

Accumulated depreciation is $1,280,000.

Total cost of asset is $3,200,000.

Answer 7

Chapter 12, Problem 12.3E

a.

To determine

To prepare: Journal entry to record impairment loss.

Given information:

Estimated fair value is $1,050,000.

Present value of benefit is $1,060,000.

Accumulated depreciation is $1,280,000.

Total cost of asset is $3,200,000.

Answer 8

b.

To determine

To prepare: Journal entry to record revised depreciation expense.

Answer 9

b.

To determine

To prepare: Journal entry to record revised depreciation expense.

Answer 10

c.

To determine

To calculate: Carrying value of the asset.

Given Information:

Fair value of asset is $725,000.

Undiscounted future cash flow is $745,000.

Answer 11

c.

To determine

To calculate: Carrying value of the asset.

Given Information:

Fair value of asset is $725,000.

Undiscounted future cash flow is $745,000.

Answer 12

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Journal entry to record impairment loss. Given information: Estimated fair value is $1,050,000. Present value of benefit is $1,060,000. Accumulated depreciation is $1,280,000. Total cost of asset is $3,200,000.

Solution Summary: The author explains journalizing as the process of recording the transactions of an organization in a chronological order.

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To prepare: Journal entry to record impairment loss.

Given information:

Estimated fair value is $1,050,000.

Present value of benefit is $1,060,000.

Accumulated depreciation is $1,280,000.

Total cost of asset is $3,200,000.

To prepare: Journal entry to record revised depreciation expense.

To calculate: Carrying value of the asset.

Given Information:

Fair value of asset is $725,000.

Undiscounted future cash flow is $745,000.

Chapter 12 Solutions

Journal entry to record impairment loss. Given information: Estimated fair value is $1,050,000. Present value of benefit is $1,060,000. Accumulated depreciation is $1,280,000. Total cost of asset is $3,200,000.

Solution Summary: The author explains journalizing as the process of recording the transactions of an organization in a chronological order.

Videos

To prepare: Journal entry to record impairment loss. Given information: Estimated fair value is $1,050,000. Present value of benefit is $1,060,000. Accumulated depreciation is $1,280,000. Total cost of asset is $3,200,000.

To prepare: Journal entry to record revised depreciation expense.

To calculate: Carrying value of the asset. Given Information: Fair value of asset is $725,000. Undiscounted future cash flow is $745,000.

Chapter 12 Solutions

To prepare: Journal entry to record impairment loss.

Given information:

Estimated fair value is $1,050,000.

Present value of benefit is $1,060,000.

Accumulated depreciation is $1,280,000.

Total cost of asset is $3,200,000.

To calculate: Carrying value of the asset.

Given Information:

Fair value of asset is $725,000.

Undiscounted future cash flow is $745,000.