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ExtremeBDS [4]
3 years ago
15

Marston acquired assets for $100,000. At the end of year 3, the assets had accumulated depreciation of $40,000. An impairment lo

ss was indicated, and the fair value of the assets was $48,000. The journal entry to record the impairment loss will include (Select all that apply.)
(a)-Debit to accumulated depreciation of $40,000
(b)-Debit to loss on impairment of $12,000
(c)-Credit to assets of $52,000
Business
1 answer:
MissTica3 years ago
7 0

Answer:

(b)-Debit to loss on impairment of $12,000

Explanation:

As for the details in question,

The asset purchase price = $100,000

Accumulated depreciation = $40,000

Thus, book value = Purchase price - Accumulated depreciation = $100,000 - $40,000 = $60,000

Now, this has a fair market value = $48,000

Thus, loss of value to be recorded as impairment loss = $60,000 - $48,000 = $12,000

Since loss in value will decrease the value of asset, it will be debited against credit in fixed assets by $12,000

This, will represent book value = $48,000

Therefore, correct option is:

Statement B

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Answer:

however

Explanation:

The best of the transitional word or phrase would most efficiently increase the cohesiveness of the following sentences is ''however''

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Explanation:

The computation of the effective rate of interest on the debt is shown below:

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It could be determined by applying the above formula so that the correct rate could come

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