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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Please need answer the general accounting question

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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Saved Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,310 in assets to launch the business. On December 31, the company's records show the following items and amounts. $ 10,200 Cash withdrawals by owner Cash Accounts receivable 15,200 Consulting revenue Office supplies 3,550 Rent expense Land 45,990 Office equipment 18,310 Accounts payable 8,740 Salaries expense Telephone expense Miscellaneous expenses Owner investments 84,310 $ 2,340 15,200 3,910 7,350 790 610 Use the above information to prepare a December 31 balance sheet for Ernst Consulting. AC Graw Hill ERNST CONSULTING Balance Sheet December 31 $ 0 G-SYNC $ 0 S 0 B

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.