Cherry Technology purchased equipment on January 4, 2022, for $250,000. The equipment had an estimated useful life
Question:
Cherry Technology purchased equipment on January 4, 2022, for $250,000. The equipment had an estimated useful life of six years and a residual value of $10,000. The company has a December 31 year end and uses straight-line depreciation. On December 31, 2024, the company tests for impairment and determines that the equipment’s recoverable amount is $100,000.
(a) Calculate the equipment’s carrying amount at December 31, 2024 (after recording the annual depreciation).
(b) Record the impairment loss.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a b Annual depreciation 250000 10...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
1+ Reviews
10+ Question Solved
Related Book For 
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Question Posted:
