Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the
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Question:
Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at December 31, 2020: (Do not round intermediate calculations. Round final answers to nearest whole dollar.)
| Asset | Date of Purchase | Deprec. Method* | Cost | Residual Value | Useful Life | Accum. Deprec. | Recoverable Amount | |||||||||
| Equipment | May 1/15 | Units | $ | 60,000 | $ | 4,750 | 8,500 units | $ | 35,750 | $ | 7,710 | |||||
| Furniture | Jun. 28/15 | DDB | 25,000 | 3,300 | 8 yrs | 20,819 | 4,650 | |||||||||
| Land | Apr. 5/15 | N/A | 98,000 | N/A | N/A | N/A | 114,800 | |||||||||
| Office building | Apr. 5/15 | SL | 103,000 | 28,700 | 15 yrs | 34,700 | 65,500 | |||||||||
| Warehouse | Apr. 5/15 | SL | 74,500 | 23,000 | 20 yrs | 25,938 | 58,100 | |||||||||
*DDB = Double-declining-balance; SL = Straight-line; Units = Units-of-production; N/A = Not applicable
Required:
1. Record any impairment losses at December 31, 2020. Assume Kane Biotech has recorded no impairment losses in previous years
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