Presented below is information related to equipment owned by Cullumber Company at December 31, 2017.
Cost $4,680,000
Accumulated depreciation to date 468,000
Expected future net cash flows 3,120,000
Fair value 2,184,000
Assume that Cullumber will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years.
(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017.
(b) Prepare the journal entry to record depreciation expense for 2018.
(c) The fair value of the equipment at December 31, 2018, is $5, 100,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Presented below is information related to equipment owned by Cullumber Company at December 31, 2017. Cost $4,680,000 Accumulated ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Reyna, a manager at an accounting firm, notices that her employees do not complete the tasks assigned to them within planned time limits. Further, they are often absent for unexcused reasons.
Answers (1)
What handles more trades than any other market, the NTSE or Nasdaq?
Answers (2)
ABC Grocers uses a separate checking account to pay their employees. The gross pay for the period was $850. However, after deductions were taken out, the net pay for the period was $790.
Answers (1)
Under the Fair Credit Reporting Act, if the consumer Challenges the accuracy of the information contained in his or her report, the reporting agency must Respond to the consumer's complaint Defend the report if the agency feels it is accurate,
Answers (1)
Michael is the owner of a steel refinery in Pittsburgh, PA. The market (his sales) price for a ton of steel increased from $400 per ton in October to $600 per ton in November.
Answers (1)
New Questions in Business
A retired person with $200,000 to invest states that "current income" is her main investment objective. Which of the following would be most suitable? (A) High yield bonds and growth stocks (B) Municipal bonds, U. S.
Answers (1)
How do compliments and substitutes affect demand?
Answers (1)
Non-trade receivables should be reported separately from trade receivables. Why is this statement either true or false? A) It is true because trade receivables are current assets and non-trade receivables are long term.
Answers (1)
In general, a visionary organization asks what three types of questions to specify its foundation, set a direction, and formulate strategies? why, when, where what, by whom, how why, what, how how, when, where who, why, when
Answers (1)
The United States wanted overseas territories because the territories had A) access to ports. B) customers who would buy U. S. products. C) connections with European nations. D) access to raw materials.
Answers (1)