Please I need help show your work Please !!Also seperate your answers so it easy...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Please I need help show your work Please !!Also seperate your answers so it easy when reading it !! IV. (16 points) Obaid Company owned the following equipment at December 31, 2022:
Cost$280,000
Accumulated depreciation 32,000
Expected future net cash flows 200,000
Fair value 136,000
Obaid plans to continue using this asset in the future. As of December 31, 2022, the equipment has a remaining useful life of 4 years.
Requirement:
a. Is the asset considered impaired for accounting purposes? Show how you determined this.
b. Prepare the journal entry to record impairment, if one is required. If no impairment, write
not applicable.
c. Obaid computes depreciation using the straight-line method. Prepare the journal entry to
record depreciation expense for 2023, assuming no residual value.
d. At the end of 2023, the fair value of the equipment had increased to $205,000. Prepare the
journal entry to record the increase in fair value according to U.S. accounting standards.
IV. (16 points) Obaid Company owned the following equipment at December 31, 2022:
Cost$280,000
Accumulated depreciation 32,000
Expected future net cash flows 200,000
Fair value 136,000
Obaid plans to continue using this asset in the future. As of December 31, 2022, the equipment has a remaining useful life of 4 years.
Requirement:
a. Is the asset considered impaired for accounting purposes? Show how you determined this.
b. Prepare the journal entry to record impairment, if one is required. If no impairment, write
not applicable.
c. Obaid computes depreciation using the straight-line method. Prepare the journal entry to
record depreciation expense for 2023, assuming no residual value.
d. At the end of 2023, the fair value of the equipment had increased to $205,000. Prepare the
journal entry to record the increase in fair value according to U.S. accounting standards.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.