Information on three plant assets currently held for sale follows.

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.1KTQ
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Information on three plant assets currently held for sale follows.
Plant Asset Original Cost Accumulated Depreciation Fair Value Selling Costs
# 101
$11,000
$500
#102
60,000
3,000
# 103
80,000
8,000
Plant Asset
# 101
# 102
# 103
$50,000
88,000
176,000
Required
a. Which plant asset(s), if any, requires an impairment loss to be recognized, and for what amount?
• Note: Include a negative sign with a loss.
$
Loss
0
(3,000) *
0 x
$40,000
17,600
88,000
b. Record the journal entry for the impairment loss (if any).
Account
Record the impairment loss.
Dr.
O O
0
0
Cr.
0 x
0 x
Transcribed Image Text:Information on three plant assets currently held for sale follows. Plant Asset Original Cost Accumulated Depreciation Fair Value Selling Costs # 101 $11,000 $500 #102 60,000 3,000 # 103 80,000 8,000 Plant Asset # 101 # 102 # 103 $50,000 88,000 176,000 Required a. Which plant asset(s), if any, requires an impairment loss to be recognized, and for what amount? • Note: Include a negative sign with a loss. $ Loss 0 (3,000) * 0 x $40,000 17,600 88,000 b. Record the journal entry for the impairment loss (if any). Account Record the impairment loss. Dr. O O 0 0 Cr. 0 x 0 x
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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