Qilin Corp., a small company that follows ASPE, owns machinery that cost $900,000 and has accumulated depreciation of$360,000. The undiscounted future net cash flows from the use of the asset are expected to be $500,000. The equipment's fair value is $400,000. Using the cost recovery impairment model, prepare the journal entry, if any, to record the impairment loss.
Answer to relevant QuestionsUse the information for Qilin Corp. given in BEll-11. By the end of the following year, the machinery's fair value has increased to $490,000. In exercise Qilin Corp., a small company that follows ASPE, owns machinery that ...Volumetrics Corporation owns machinery that cost $20,000 when purchased on January 1, 2013. Depreciation has been recorded at a rate of $3,000 per year, resulting in a balance in accumulated depreciation of $6,000 at ...Odyssey Ltd. purchased machinery on January 1, 2014, for $60,000. The machinery is estimated to have a residual value of $6,000 after a useful life of eight years. (a) Calculate the 2014 depreciation expense using the ...Marmon Drilling Limited leases property on which oil has been discovered. Wells on this property produced 21,000 barrels of oil during the current year and it was sold at an average of $85 per barrel. The total oil resources ...The information that follows relates to equipment owned by Gaurav Limited at December 31, 2014: Cost ............................ $9,000,000 Accumulated depreciation to date ............... 1,000,000 Expected future net ...
Post your question