Oriole Company owns equipment that cost $1,080,000 and has accumulated depreciation of $456,000. The expected future...

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Oriole Company owns equipment that cost $1,080,000 and has accumulated depreciation of $456,000. The expected future net cash flows from the use of the asset are expected to be $600,000. The fair value of the equipment is $480,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Oriole Company owns equipment that cost $1,080,000 and has accumulated depreciation of $456,000. The expected future net cash flows from the use of the asset are expected to be $600,000. The fair value of the equipment is $480,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.)

Answer rating: 100% (QA)

To record the impairment loss we need to compare the carrying amou... View the full answer