Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. presented below is information related to equipmen

Presented below is information related to equipment owned by Wyman Company at December 31, 2020....

70.2K

Verified Solution

Question

Accounting

Presented below is information related to equipment owned by Wyman Company at December 31, 2020.

Cost $10,350,000
Accumulated depreciation to date 1,150,000
Expected future net cash flows 8,050,000
Fair value 5,520,000

Wyman intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,000. As of December 31, 2020, the equipment has a remaining useful life of 4 years.

1. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020

2. Prepare the journal entry (if any) to record depreciation expense for 2021.

3. The asset was not sold by December 31, 2021. The fair value of the equipment on that date is $6,095,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $23,000.

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

Electrical Engineering
1.2K views

In set-associative mapping, why when having the choice to replace of which cache line to replace...

Electrical Engineering
1.2K views

A 440-V, 3-φ 50-Hz, 4 poles, 37.3 kW, Y-connected induction motor has the following parameters: R1= 0.1...

Biology
1.2K views

of the various c When you are asked to write the Component Part Definiti OF...

Geometry
1.2K views

15 Find the EXACT area and perimeter A A 6 in 45 B 12 in...

Basic Math
1.2K views

Hong had7of a spool of yarn. He used8Write your answer in simplest form.3of his yarn...

Basic Math
1.2K views

A company has determined that when x hundred dulcimers are built, the average cost per...

Algebra
1.2K views

Solve for all values of x in the given intervals 0 a 2 cos x...

Accounting
1.2K views

The following draft group financial statements...

Accounting
1.2K views

Q2. Below is a table is data related to hours of use of a photocopier...

Accounting
1.2K views

Henry Shuller owns a fishing cabin in Wisconsin. Schuller offered the cabin for rent from...

Accounting
1.2K views

Bryant Company reports net income of $20,200. For the year, depreciation expense is $7,200 and...

Finance
1.2K views

You have an app named Pix. You have monthly budget of $50K for UA activity...