Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. oriole company uses special strapping equipment in

Oriole Company uses special strapping equipment in its packaging business. The equipment was purchased in...

80.2K

Verified Solution

Question

Accounting

Oriole Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $ 11,800,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2017, new technology was introduced that would accelerate the obsolescence of Orioles equipment. Orioles controller estimates that expected future net cash flows on the equipment will be $ 7,434,000 and that the fair value of the equipment is $ 6,608,000. Oriole intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Oriole uses straight-line depreciation.

- Prepare the journal entry for the equipment at December 31, 2018. The fair value of the equipment at December 31, 2018, is estimated to be $ 6,962,000. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a...

Statistics
1.2K views

lesson 40 homework study of different in tow population proportions Sam claims that the proportion of all...

Biology
1.2K views

1. In a tube of Thioglycollate broth, _ would grow at the very top portion of...

Physics
1.2K views

A 6.30 ?F capacitor that is initially uncharged is connected in series with a 4600...

Geometry
1.2K views

5 For the right circular cylinder suppose that r Sin and h 6 in Find...

Basic Math
1.2K views

In which type of statistical study is the population influenced by researchers?A Researchers do not...

Statistics
1.2K views

Trydint bubble gum company claims that 7 out of 10 people prefer their gum to...

Algebra
1.2K views

U X Reflection along X axis Vicepression by 2 x 1 2 LEFF 2 UP...

Accounting
1.2K views

1 points eBook Print References M4-16 (Static) Classifying Activities as Value-Added or Non-value-Added [LO 4-8]...

Accounting
1.2K views

Discuss the two methods of recording bad debt expense. What type of company uses each...

Accounting
1.2K views

Budgeted Actual Sales (8,000 ingots) $ 240,000 $ 240,000 ...

Finance
1.2K views

Saks is expected to pay a dividend in year 1 of $2.10, a dividend in...