On March Alpha Inc. purchased an equipment with a cost of HK$ a useful life of five years and no salvage value. The Company uses the straightline method. Depreciation is computed on the basis of the nearest full month. The following information is available at each year end:

Fair value less cost to sell HK$OOO HK$OOO

Valueinuse HK$OOO HK$OOO

There is no change in the asset\'s useful life or salvage value

Required:

a Prepare journal entries to record depreciation expense and impairment test for b Prepare journal entries to record depreciation expense and impairment test for

Answer rating: 100% (QA)

a Journal entries to record depreciation expense ... View the full answer