Vaughn Corporation purchased equipment for $735000 in 2025. Two years later, the equipment, has accumulated depreciation...
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Vaughn Corporation purchased equipment for $735000 in 2025. Two years later, the equipment, has accumulated depreciation of $221000 and Vaughn has concerns that the equipment has been impaired. Future cash flows are estimated to be $492000. The controller believes the current fair value of the equipment to be approximately $432000. The journal entry to record the impairment loss on the equipment will include O credit to Loss on Impairment for $82000. O credit to Accumulated Depreciation - Equipment for $82000. no impairment has occurred, so no journal entry is required. credit to Accumulated Depreciation - Equipment for $22000. Vaughn Corporation purchased equipment for $735000 in 2025. Two years later, the equipment, has accumulated depreciation of $221000 and Vaughn has concerns that the equipment has been impaired. Future cash flows are estimated to be $492000. The controller believes the current fair value of the equipment to be approximately $432000. The journal entry to record the impairment loss on the equipment will include O credit to Loss on Impairment for $82000. O credit to Accumulated Depreciation - Equipment for $82000. no impairment has occurred, so no journal entry is required. credit to Accumulated Depreciation - Equipment for $22000.
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Solution The journal entry to record the impairment loss on the equipment would be Loss on Impairmen... View the full answer
Related Book For
Accounting Principles Part 2
ISBN: 978-1118306796
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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