d) Presented below is information related to equipment owned by Golden Company at December 31, 2020:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
d) Presented below is information related to equipment owned by Golden Company at December 31, 2020: Cost Tk.90,00,000; Accumulated depreciation to date Tk. 10,00,000; Expected future net cash flows Tk. 70,00,000; Fair value Tk. 48,00,000. Assume that Golden Company intends to dispose of the equipment in the coming year. It is expected that cost of disposal will be Tk. 20,000. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Required: 1. 2. 3. Prepare the Journal entry (if any) to record the impairment of the asset at December 31, 2020. Prepare the Journal entry (if any) to record depreciation expense for 2021 The fair value of the equipment at December 31, 2021 is Tk. 51 Lac. Prepare the journal entry (if any) necessary to record this increase of fair value. d) Presented below is information related to equipment owned by Golden Company at December 31, 2020: Cost Tk.90,00,000; Accumulated depreciation to date Tk. 10,00,000; Expected future net cash flows Tk. 70,00,000; Fair value Tk. 48,00,000. Assume that Golden Company intends to dispose of the equipment in the coming year. It is expected that cost of disposal will be Tk. 20,000. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Required: 1. 2. 3. Prepare the Journal entry (if any) to record the impairment of the asset at December 31, 2020. Prepare the Journal entry (if any) to record depreciation expense for 2021 The fair value of the equipment at December 31, 2021 is Tk. 51 Lac. Prepare the journal entry (if any) necessary to record this increase of fair value.
Expert Answer:
Answer rating: 100% (QA)
Step 13 Cost Accumulated Depreciation Carrying Value Fair va... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
The following data relate to the Plant Assets account of Faith Hill, Inc. at December 31, 2008. The following transactions occurred during 2009. (a) On May 5, Asset A was sold for $13,000 cash. The...
-
The following data relate to the current months activities of Animated Video Productions: Actual Total Direct Labor .................................................................................
-
The following data relate to Voltaire Company's defined benefit pension plan: Required: Determine the amount of pension plan assets at fair value on December31. Plan assets at fair value, Jary 1...
-
10 You are looking at an investment that will pay $1200 in 5 years if you invest $1000 today. What is the implied rate of interest? A. What Formula would you use to find the answer? Show the formula...
-
A chemical company produces a substance composed of 98% cracked corn particles and 2% zinc phosphide for use in controlling rat populations in sugarcane fields. Production must be carefully...
-
Exercise1 (20 points) Background readings Chapter 4 Scenario1 Consider an individual who has a 2-year undergraduate Diploma in Business and has a $30,000/year wage profile over his life cycle. Now,...
-
How is a riskless portfolio set up in order to derive the Black-Scholes-Merton differential equation?
-
1. Is there any benefit for Mission to deploy this technology for its independent distributors? For the consumer? 2. What types of handheld devices could be used today for a system like this? Compile...
-
1. If it takes 50 J of energy to move 10 C of charge from point A to point B. what is the magnitude of the potential difference between points A and B? 2. Two long parallel wires carry currents of 20...
-
A put option in finance allows you to sell a share of stock at a given price in the future. There are different types of put options. A European put option allows you to sell a share of stock at a...
-
A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned that high employee turnover is partially responsible for the high defect rate. In...
-
4. Draw a PDA that accepts the below language. This is the language where there must be one additional 1 than the number of Os. {n(w) = no(w) + 1 | w (0 + 1)*} 5. What language does the following...
-
How did L.L Bean's decision to end its lifetime refund policy relate to ethical issues relating to communication when they made the decision?
-
You are considering a project with the following cash flows: Year 1: $5,600 Year 2: $9,000 Year 3: $2,000 What is the present value of these cash flows, given an 11 percent discount rate?
-
Brainstorm a list of ten ways in which you could take advantage of communicating with your instructor to help build and construct a powerful learning experience. What do you do if you need additional...
-
Donnelly and Son pay $8 as the annual dividend on their preferred stock. Currently, this stock is selling for $72 a share. What is Donnelly's cost of preferred stock?
-
Cindy purchased a building for $1,000,000. How should she deal with the expense on her tax return? a) She must deduct the $1,000,000 in the year of purchase. b) She must not deduct anything and wait...
-
You are the newly appointed tax practitioner to complete Emilys tax return and have downloaded the prefill report for Emilys tax return (hint, you can read what a prefill report is here (Links to an...
-
As a general rule, how should long-term liabilities be reported on the debtor's balance sheet?
-
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45 million, of which $15 million was allocated to goodwill. At the end of the current fiscal year, the...
-
Describe a consignment sale. When does a consignor recognize revenue for a consignment sale?
-
Which of the following statements about Islamic banking is not true? a. Interest (known as Riba) is prohibited. b. Conventional interest is considered by scholars to result in inequality and...
-
Which of the following statements is true? a. Money is a commodity as well as a medium of exchange in a conventional mode of financing. b. Money is not a commodity and is a medium of exchange and...
-
Which of the following statements is true? a. Murabaha, an equity instrument, is a sales contract in which the asset is sold by the bank to the customer at costplus- profit. b. Salam is a forward...
Study smarter with the SolutionInn App