Volkswagen Group reports the following information for property plant and
Volkswagen Group reports the following information for property, plant, and equipment as of December 31, 2013, along with additions, disposals, depreciation, and impairments for the year ended December 31, 2013 (euros in millions):
Property, plant, and equipment, net . . . . . . . . . . . . . . . . . . €42,389
Additions to property, plant, and equipment . . . . . . . . . . . 11,061
Disposals of property, plant, and equipment . . . . . . . . . . . 2,362
Depreciation on property, plant, and equipment . . . . . . . . 6,689
Impairments to property, plant, and equipment. . . . . . . . . 118
1. Prepare Volkswagen’s journal entry to record its depreciation for 2013.
2. Prepare Volkswagen’s journal entry to record its additions for 2013 assuming they are paid in cash and are treated as “betterments (improvements)” to the assets.
3. Prepare Volkswagen’s journal entry to record its €2,362 in disposals for 2013 assuming it receives €700 cash in return and the accumulated depreciation on the disposed assets totals €1,162.
4. Volkswagen reports €118 of impairments. Do these impairments increase or decrease the Property, Plant and Equipment account? By what amount?
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help