Presented below is information related to equipment owned by Suarez Company at December 31, 2025. Assume that
Question:
Presented below is information related to equipment owned by Suarez Company at December 31, 2025.
Assume that Suarez will continue to use this asset in the future. As of December 31, 2025, 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, 2025.
b. Prepare the journal entry to record depreciation expense for 2026.
c. The fair value of the equipment at December 31, 2026, is $5,100,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
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Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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