Presented below is information related to equipment owned by Tamarisk Company at December 31, 2017. Cost Accumulated depreciation to...

   

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Presented below is information related to equipment owned by Tamarisk Company at December 31, 2017. Cost Accumulated depreciation to date Expected future net cash flows. Fair value Assume that Tamarisk will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. $9,450,000 1,050,000 7,350,000 5,040,000 Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 SHOW LIST OF ACCOUNTS Debit Credit Prepare the journal entry to record depreciation expense for 2018. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation SHOW LIST OF ACCOUNTS LINK TO TEXT Debit Dec. 31 The fair value of the equipment at December 31, 2018, is $5,355,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit Debit Credit

Answer rating: 100% (QA)

Cost 9 450 000 Less Accumulated Depreciation 1 050 000 Carrying Value 8 400 00 View the full answer