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
ki77a [65]
2 years ago
6

Sheffield Corp. bought a machine on January 1, 2011 for $814000. The machine had an expected life of 20 years and was expected t

o have a salvage value of $82000. On July 1, 2021, the company reviewed the potential of the machine and determined that its future net cash flows totaled $408000 and its fair value was $273000. If the company does not plan to dispose of it, what should Sheffield record as an impairment loss on July 1, 2021
Business
1 answer:
Alja [10]2 years ago
3 0

Answer:

$156,700

Explanation:

Depreciation expense = [Cost-salvage value] /useful life

Depreciation expense = [814000 - 82000]/20

Depreciation expense = $36600

1 January 2011 - 1 July 2021 = 10.5 years . Total depreciation = 10.5 * $36600= 384,300

Book value as on 1 July 2021 = Cost - Accumulated depreciation

Book value as on 1 July 2021 = 814000-384300

Book value as on 1 July 2021 = 429700

Net realizable value = Lower of future cash flow or fair value

Lower of 408000 or 273000

Net realizable value = 273000

Now, since the Book value is more than net realizable value, Asset is impaired

Impairment loss = $273,000 - $429,700

Impairment loss = $156,700

Thus, Sheffield should record $156,700 as an impairment loss on July 1, 2021.

You might be interested in
"New York City is issuing $500,000,000 of general obligation bonds paying interest on January 1st and July 1st of each year unti
poizon [28]

Answer:

  • 8 months for the first interest
  • 6 months for the second

Explanation:

The interest is to be paid semi-annually which means that it accrues for 6 months. However, the bond was issued on May 1, 2020 which is 8 months before the first interest payment on January 1, 2021 so the January payment will have to cover for those months as interest starts to build immediately the bond is purchased.

The second payment on July 1, 2021 will cover the period of 6 months between January 1 and July 1, 2021.

8 0
3 years ago
What are the five exclusive rights given to copyright owners under the copyright act?
bagirrra123 [75]
The right to reproduce the copyrighted work
the right to prepare derivative works based upon the work
the right to distribute copies of the work to the public
the right to perform the copyrighted work publicly
the right to display the copyrighted work publicly
8 0
2 years ago
Introduction of checks into the payments system reduced the costs of exchanging goods and services. Another advantage of checks
sweet-ann [11.9K]

Answer:

they provide convenient receipts for purchases

Explanation:

Checks payment is a form of paying bills. They were created to allow people to make payments without carrying large amounts of cash hence convenient for purchases.They are also  are safer than other forms of payment as they are traceable; when a transaction occurs and payment is made by checks, banks usually make copies of each check and the owner remains with an underlying copy from the check book.  

6 0
3 years ago
Challenges that has made some of them go into liquidation with takeovers all over the country. Examine the processes for the acq
xxMikexx [17]

Answer:

The given statement is true, that can be defined as follows:

Explanation:

They continue always to have a supervisor unless the financial are all, which collapses to regulation is criticized in constructing practices and regulations for the divestiture lock, so if the international banks repatriate throughout a nation, which results in monetary uncertainty in the world, they take the required measures to cope with both the problems faced by the moon inside the economic system.

The financial and monetary system of a nation is controlled and corrective actions are taken to resolve moon-facing financial problems through the liquidation of banks. Its national economy is collapsing with just a regulator, but any money problems emerge in a difficult area unit to control.

5 0
3 years ago
Please give the answer to question one
Nataliya [291]

Answer:

A

Explanation:

A is the answer to the question

7 0
2 years ago
Other questions:
  • A natural disaster is an example of what type of risk?
    11·1 answer
  • The holder of a $1,000 face value bond can exchange the bond any time for 25 shares of stock. Then the conversion ratio:
    9·1 answer
  • The LA Galaxy understands the importance of attracting big name soccer stars like Beckham, Keane and Donovan to the team. For th
    9·1 answer
  • Johnson Battery Systems recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depr
    11·1 answer
  • Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of
    6·1 answer
  • A cost-benefit analysis is a way
    14·2 answers
  • Subordinated debentures Group of answer choices are the safest form of corporate bonds. are financial assets held in trust by a
    7·1 answer
  • Describe TWO ways in which the above law protects citizens against human<br>rights violations.<br>​
    14·1 answer
  • AYUDA porfa quiero sacar 10 en esto porfavor mis notas estan bajando!
    10·1 answer
  • Read the graph. What is the equilibrium price?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!