1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Naddik [55]
3 years ago
11

Marigold Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200. The expected future net cash fl

ows from the use of the asset are expected to be $520,000. The fair value of the equipment is $416,000. Prepare the journal entry, if any, to record the impairment loss.
Business
1 answer:
DanielleElmas [232]3 years ago
3 0

Answer:

Dr Impairment expense (p/l)   $20,800

Cr Accumulated depreciation   $20,800

Being entries to recognize the impairment of asset.

Explanation:

An asset is said to be impaired when the carrying amount is higher than the recoverable amount. The recoverable amount is the higher of the value in use (the expected future net cash flows from the use of the asset) and the  fair value less cost to sell.

Given;

Cost = $936,000

Accumulated depreciation = $395,200

Carrying amount = $936,000 - $395,200

= $540,800

The recoverable amount is the expected future net cash flows from the use of the asset $520,000 as this is higher than the fair value of the equipment which is $416,000.

Since the carrying amount is higher than the recoverable amount, the asset is impaired.

Impairment = $540,800 - $520,000

= $20,800

The journal entries,

Dr Impairment expense (p/l)   $20,800

Cr Accumulated depreciation   $20,800

Being entries to recognize the impairment of asset.

You might be interested in
Which of the following is true of an opportunity​ cost? A. It is the income foregone by not using a resource in an alternative w
ahrayia [7]

Answer:

A. It is the income foregone by not using a resource in an alternative way.

Explanation:

Opportunity cost is the income foregone by not using a resource in an alternative way.

Opportunity cost is refers to the value of what you have to give up in order to choose something else. It can also be called REAL COST.

It also refers to the value or benefits of something that must be given up in order to acquire another thing.

7 0
3 years ago
Which african american is famous for breaking into major league baseball?
balu736 [363]
Jackie Robinson- Jackie played American pro baseball, Jackie was the first African American to play baseball for the Mlb in the modern era. Jackie was the second baseman. Jackie was born 1-31-1919 in Cairo GA and died 10-24-72 in North Stamford, CT due to a heart attack Jackie played for the brooklyn dodgers and was number 42
7 0
3 years ago
Macroeconomics studies the economy as a whole. True or False?Macroeconomics studies the economy as a whole. This is true.
Nutka1998 [239]
This is true. Macroeconomics studies the entire economy as a whole while microeconomics studies specific aspects of the economy.
7 0
3 years ago
The Illinois populations of the greater prairie chicken benefited when managers brought in prairie chickens from other populatio
choli [55]

Answer: <em>Gene Flow </em>

Explanation:

In the population genetics, the gene flow which is also referred to as the allele flow is described as the transmission of the genetic alteration from one ends of the population to the other. If the amount of the flow tends to be high enough, then the respective populations are known to to have the equal allele frequencies and thus effectively can be termed as the single population.

4 0
3 years ago
Which is a good rule to follow when sending business emails? (1 point)
Likurg_2 [28]
Be sure that your email address is of a professional nature.
Ensure your tone is professional.
Use a clear and concise subject line.
Avoid grammar or spelling mistakes.
Double-check the spelling of your recipient's name.
Use a standard, easy-to-read font and font size.
5 0
3 years ago
Other questions:
  • Daniel acquires a 30% interest in the PPZ Partnership from Paolo, an existing partner for $43,000 of cash. The PPZ Partnership h
    15·1 answer
  • All things being equal, which will move more easily; a newly polished car or a car that has never been polished
    7·1 answer
  • Is accounting is easy​
    6·2 answers
  • Fed up with her working conditions at the call center, Lisa decides to invest in a state-of-the-art sewing machine and produce l
    15·1 answer
  • Mr. Henshaw, CEO of MBA Bank, decides that the organization needs to provide more convenient service to customers. He decides to
    6·1 answer
  • On July 1, Shady Creek Resort borrowed $350,000 cash by signing a 10-year, 8.5% installment note requiring equal payments each J
    6·1 answer
  • Each student ticket for an art museum costs $12. 50. The total cost for student tickets, t, varies directly as the number of tic
    13·1 answer
  • What are the three factors of producrion and what role does each factor play in the production of goods and services
    13·1 answer
  • Question is in the image below! please help!
    11·1 answer
  • understanding customers better has helped amazon and others become more successful. the understanding comes primarily from:
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!