Question: Assume the same information as in IFRS11-11, except that Pujols intends to dispose of the equipment in the coming year. Instructions (a) Prepare the journal

Assume the same information as in IFRS11-11, except that Pujols intends to dispose of the equipment in the coming year.
Instructions
(a) Prepare the journal entry (if any) to record the impairment of the asset at
December 31, 2012.
(b) Prepare the journal entry (if any) to record depreciation expense for 2013.
(c) The asset was not sold by December 31, 2013. The fair value of the equipment on that date is $5,100,000. Prepare the journal entry (if any) necessary to record this increase. It is expected that the cost of disposal is $20,000.

Step by Step Solution

★★★★★

3.51 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a December 31 2012 Loss on Impairment 3600000 Accumulated ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

51-B-A-D-I-D (152).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2013 for $10,000,000 and had an estimated useful life of 8 years with no salvage...

Assume the same information as E11.18, except that Pujols intends to dispose of the equipment in the coming year. Instructions a. Prepare the journal entry (if any) to record the impairment of the...

Assume the same information as in E1412. Minor Inc. sells 10% bonds having a maturity value of $3 million for $2,783,724. The bonds are dated January 1, 2011, and mature on January 1, 2016. Interest...

Assume the same information as in IFRS11.11, except that Pujols intends to dispose of the equipment in the coming year. Cost (residual value $0)..............................$9,000,000 Accumulated...

Assume the same information as E11-18, except that Pujols intends to dispose of the equipment in the coming year. Instructions (a) Prepare the journal entry (if any) to record the impairment of the...

Impairment Assume the same information as E11-16, except that Pujols intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,000. (a) Prepare the...

Assume the same information as E11-16, except that Pujols intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,000. Instructions (a) Prepare...

E10.19 (LO 3) (Impairment) Assume the same information as E10.18, except that Pujols intends to dispose of the equipment in the coming year. Instructions a. Prepare the journal entry (if any) to...

Assume the same information as E11.18, except that Pujols intends to dispose of the equipment in the coming year. Instructions a. Prepare the journal entry (if any) to record the impairment of the...

Consumers must decide how much they wish to consume today (c.) versus in the future (c.). In making their decisions, they are constrained by the amount of their present income (v.) and future income...

Consider two different normal distributions for which both the means 1 and 2 and the variances 21 and 22 are unknown, and suppose that it is desired to test the following hypotheses: H0: 21 22, H1:...

The primary source of financial information for any publicly traded company is its weekly report. True or False

Prove that if '(r)- 0 on (a,b), that f is constant on (a, b).

8. Let T be the solid in the first octant bounded above by the sphere a? + y? + 22 = 7 and below by the paraboloid z = a? + y?. Express (do not evaluate) the integtral sin (Vr? + y? + 22) dV T in...

1. Find the maximum and minimum values of the function f(r,y, z) = r- y + z sphere r? + y? + 22 = 100. (10 pt) on the

Determine the forces acting in members JE, EF and IF. Identify tension or compression. K 3 m |D F -2 m-2 m2 m--2 m- -2 m2 m- 4 kN 5 kN 8 kN 10 kN

GE Shipping is the largest shipping company in private sector in India. As on 31st March 2009, it had 39 ships in its fleet with a total tonnage of 2,881,624. The company reviews the carrying amounts...

When is revenue recognized under the cost-recovery method?

When is revenue recognized under the deposit method? How does the deposit method differ from the installment sales and cost-recovery methods?

QUESTION 2 It is believed that the Covid-19 has led to a reduction in the average work hours per week. To test the vaildity of this belief, you formulate hypotheses as follows: Ho: E(X) = 30 H1: E(X)...

Your boss has asked you to evaluate the economics of replacing 1.000 60-Watt incandescent light bulbs (ILBs) with 1.000 compact fluorescent lamps (CFLs) for a particular lighting application. During...

The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $40,000, and it falls in the MACRS 3-year class. The applicable...