Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value beca

Question

2 years ago

6

Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value beca

use of technological changes. An entry to record the impairment should A. recognize additional depreciation expense for the period. B. include a credit to the equipment account. C. include a credit to the equipment accumulated depreciation account. D. not be made if the equipment is still being used.

Business

1 answer:

Alla [95] · Answer 1 · 2022-07-13T07:39:07+03:00

Answer:

C. include a credit to the equipment accumulated depreciation account.

Explanation:

Since Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should include a credit to the equipment accumulated depreciation account.

In Accounting, Depreciation can be defined as the decrease in the value of an asset (factory equipment, logistics tools etc) as a result of wear or tear, within a specific period of time. Depreciation is used for the allocation of cost to tangible assets with respect to its life expentency or within its useful life.