Answer:
$42,000
Explanation:
Straight line depreciation charges a fixed amount of depreciation for the period the asset is used in the business.
Depreciation Expense = Cost - Salvage Value ÷ Estimated Useful Life
January 1, 2020
Carrying Amount
Cost - Accumulated depreciation = $450,000
Recoverable Amount :
Higher of Fair Value and Future Cash Flows
Recoverable Amount = $420,000
Impairment loss incurs when Carrying Amount > Recoverable Amount
therefore,
Impairment loss = $30,000
December 31 , 2020
Depreciation expense = New Depreciable Amount ÷ Remaining useful life
= $420,000 ÷ 10
= $42,000
Answer:
.d. uses a perpetual inventory system.
Explanation:
The company determiantes the cost of good sold and therefore; their invneotry balance after each purchase, return, allowance, discount or freight are perform. It doesn't use in-between account like freight-in purchase discount, purchase returns and others. It determinates the inventory each time the account is used in a transactions rather than a year-end adjustment with the net purchases
Having a solid structure or surface. Does this help?
