resented below is information related to equipment owned by Suarez Company at December 31, 2019. Cost Rwf 27,000 Accumulated depreciation to date 3,000 Expected future net cash flows 21,000 Fair value 14,400 Assume that Suarez will continue to use this asset in the future. As of December 31, 2019, the equipment has a remaining useful life of 4 years. Instructions Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2019. Prepare the journal entry to record depreciation expense for 2020. The fair value of the equipment at December 31, 2020, is Rwf 15,300. Prepare the journal entry (if any) necessary to record this increase in fair value.

resented below is information related to equipment owned by Suarez Company at December 31, 2019. Cost Rwf 27,000 Accumulated depreciation to date 3,000 Expected future net cash flows 21,000 Fair value 14,400 Assume that Suarez will continue to use this asset in the future. As of December 31, 2019, the equipment has a remaining useful life of 4 years. Instructions Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2019. Prepare the journal entry to record depreciation expense for 2020. The fair value of the equipment at December 31, 2020, is Rwf 15,300. Prepare the journal entry (if any) necessary to record this increase in fair value.

Name: Presented below is information related to equipment owned by Suarez Co
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Description: Presented below is information related to equipment owned by Suarez Company at December 31, 2019.Cost Rwf 27,000Accumulated depreciation to date 3,000Expected future net cash flows

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 60E

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Assume that Carleton reported the following information regarding a machine at December 31, 2019: Cost $60,000 Accumulated depreciation to date 30,000 Expected future net cash flows 26,000 Fair value 24,000 Assuming that Carleton will continue to use this asset in the future and the machine has a remaining useful life of 4 years. Instructions Prepare the journal entry (if any) to record the impairment of the asset on December 31, 2019. Besides, prepare the journal entry to record depreciation expenses for 2020. Assuming that Carleton intends to dispose of the machine in the coming year. It is expected that the cost of disposal will be $1,000. However, the machine was not sold by December 31, 2020. The fair value of the machine on that date is $26,800. Prepare the journal entry (if any) necessary to record this increase in fair value. Assume that Carleton has a crane which has an original cost of $150,000, an…
Presented below is information related to equipment owned by Suarez Company at December 31, 2020. Cost $9,000,000 Accumulated depreciation to date 1,000,000 Expected future net cash flows 7,000,000 Fair value 4,800,000 Assume that Suarez will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Instructions a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. b. Prepare the journal entry to record depreciation expense for 2021. c. The fair value of the equipment at December 31, 2021, is $5,100,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
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