1. Wolz's Domino Manufacturing Company learned that one of its cutting machines is obsolete. Although the...

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1. Wolz's Domino Manufacturing Company learned that one of its cutting machines is obsolete. Although the company will continue to use this machinery in the future, management beleves that an impairment write-down is required. The following information selates to the cutting machine "(Cick the icon to vlew the information) The firm estimates that the machine has a useful le of 11 years and it has used it for 5 years It has no salvage value Read the reauirements Requirement a. Prepare the journal entry required to record the impairment loss. (Record debits first, then credits. Exclude explanations from any joumal entries.) Account Date of Impairment (1) (2) (3) (4) Requirement b. Assuming that Wolz's uses the straight-line method with no residual value. prepare the journal entry to record the revised depreciation expense for the first year immediately folowing the impalrment Account Subsequent Year (5) (6) (7) (8) Requirement c. Assume that 2 years following the impairment write-down, the fair value of the asset falls to $731,000. The sum of the undiacounted future cash flows is $754,000. What is the camying value of the asset at this time? Prepare any joumal entry necessary to refiect the change in fair value. What is the carrying value of the asset at this time? The carrying value of the asset two years folowing the impairment write-down is Prepare any journal entry necessary to reflect the change in fair value. (Record debits first then credits. Exclude explanations from any joumal entries. no entry is required select "No Entry Required on the first line of the Joumal antry table and leave all remaining cells in the table blank,) Account Date of Impairment (10) (11) (12) Print 1: Data Table Description Cutting Machine Cost 3,226.000 Accumulated depreciation (up to the date of the impairment test) 1.281,000 Total estimated future cash flows 1,229,000 Total discounted future cash flows 1,078.000 Estimated fair value 1,074,000 Costs to sell 5,000 Remaining useful Rife from the impaiment date 6 years 2 Requirements a Prepare the joumal entry required to record the impairment loss. b. Assuming that Wolz's uses the straight-line method with no residual value, prepare the jourmal entry to record the revised depreciation expense for the first year immediataly following the impairment c. Assume that 2 years following the impairment write-down, the fair value of the asset fallis to 5731,000. The sum of the undiscounted future cash flows is S754,000. What is the carrying value of the asset at this fime? Prepare any journal entry necessary to reflect the change in fair value. 1. Wolz's Domino Manufacturing Company learned that one of its cutting machines is obsolete. Although the company will continue to use this machinery in the future, management beleves that an impairment write-down is required. The following information selates to the cutting machine "(Cick the icon to vlew the information) The firm estimates that the machine has a useful le of 11 years and it has used it for 5 years It has no salvage value Read the reauirements Requirement a. Prepare the journal entry required to record the impairment loss. (Record debits first, then credits. Exclude explanations from any joumal entries.) Account Date of Impairment (1) (2) (3) (4) Requirement b. Assuming that Wolz's uses the straight-line method with no residual value. prepare the journal entry to record the revised depreciation expense for the first year immediately folowing the impalrment Account Subsequent Year (5) (6) (7) (8) Requirement c. Assume that 2 years following the impairment write-down, the fair value of the asset falls to $731,000. The sum of the undiacounted future cash flows is $754,000. What is the camying value of the asset at this time? Prepare any joumal entry necessary to refiect the change in fair value. What is the carrying value of the asset at this time? The carrying value of the asset two years folowing the impairment write-down is Prepare any journal entry necessary to reflect the change in fair value. (Record debits first then credits. Exclude explanations from any joumal entries. no entry is required select "No Entry Required on the first line of the Joumal antry table and leave all remaining cells in the table blank,) Account Date of Impairment (10) (11) (12) Print 1: Data Table Description Cutting Machine Cost 3,226.000 Accumulated depreciation (up to the date of the impairment test) 1.281,000 Total estimated future cash flows 1,229,000 Total discounted future cash flows 1,078.000 Estimated fair value 1,074,000 Costs to sell 5,000 Remaining useful Rife from the impaiment date 6 years 2 Requirements a Prepare the joumal entry required to record the impairment loss. b. Assuming that Wolz's uses the straight-line method with no residual value, prepare the jourmal entry to record the revised depreciation expense for the first year immediataly following the impairment c. Assume that 2 years following the impairment write-down, the fair value of the asset fallis to 5731,000. The sum of the undiscounted future cash flows is S754,000. What is the carrying value of the asset at this fime? Prepare any journal entry necessary to reflect the change in fair value.

Answer rating: 100% (QA)

a Impairment can be recorded as per 2 methods US GAAP IFRS Impairment under IFRS is found out by comparing carrying value to recoverable amount Recove... View the full answer