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

Presented below is information related to equipment owned by Pronghorn Company at December 31, 2017.

Cost		$9,990,000
Accumulated depreciation to date		1,110,000
Expected future net cash flows		7,770,000
Fair value		5,328,000

Pronghorn intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,200. As of December 31, 2017, the equipment has a remaining useful life of 4 years.

a) prepare the journal entry (if any) to record the impairment of the asset at December 31,2017

b) prepare the journal entry (if any) to record depreciation expense for 2018

Expert Solution

ekkarill92 answered 2 years ago

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

Presented below is information related to equipment owned by Waterway Company at December 31, 2017. Cost $10,800,000 Accumulated depreciation to date 1,200,000 Expected future net cash flows 8,400,000 Fair value 5,760,000 Waterway intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,000. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the...

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

Presented below is information related to equipment owned by Nash Company at December 31, 2017. Cost $9,540,000 Accumulated depreciation to date 1,060,000 Expected future net cash flows 7,420,000 Fair value 5,088,000 Assume that Nash will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required,...

Presented below is information related to equipment owned by a company at December 31, 2017. ...

Presented below is information related to equipment owned by a company at December 31, 2017. Cost $5,600,000 Accumulated depreciation to date 640,000 Expected future net cash flows 4,000,000 Fair value 2,720,000 Assume that the company will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Using the attached T-account template: Prepare the journal entry (if any) to record the impairment of...

Presented below is information related to equipment owned by Blossom Company at December 31, 2020. Cost...

Presented below is information related to equipment owned by Blossom Company at December 31, 2020. Cost $11,070,000 Accumulated depreciation to date 1,230,000 Expected future net cash flows 8,610,000 Fair value 5,904,000 Blossom intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,600. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the...

Presented below is information related to equipment owned by Whispering Company at December 31, 2020. Cost...

Presented below is information related to equipment owned by Whispering Company at December 31, 2020. Cost $9,990,000 Accumulated depreciation to date 1,110,000 Expected future net cash flows 7,770,000 Fair value 5,328,000 Whispering intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,200. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Correct answer iconYour answer is correct. Prepare the journal entry (if any)...

Presented below is information related to equipment owned by Wildhorse Company at December 31, 2020. Cost...

Presented below is information related to equipment owned by Wildhorse Company at December 31, 2020. Cost $10,620,000 Accumulated depreciation to date 1,180,000 Expected future net cash flows 8,260,000 Fair value 5,664,000 Wildhorse intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,600. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the...

Presented below is information related to equipment owned by Vaughn Company at December 31, 2020. Cost...

Presented below is information related to equipment owned by Vaughn Company at December 31, 2020. Cost $10,350,000 Accumulated depreciation to date 1,150,000 Expected future net cash flows 8,050,000 Fair value 5,520,000 Assume that Vaughn will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...

Presented below is information related to equipment owned by Crane Company at December 31, 2020. Cost...

Presented below is information related to equipment owned by Crane Company at December 31, 2020. Cost $9,090,000 Accumulated depreciation to date 1,010,000 Expected future net cash flows 7,070,000 Fair value 4,848,000 Assume that Crane will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...

Presented below is information related to equipment owned by Coronado Company at December 31, 2020. Cost...

Presented below is information related to equipment owned by Coronado Company at December 31, 2020. Cost (residual value $0) $8,994,100 Accumulated depreciation to date 1,007,300 Value-in-use 5,490,200 Fair value less cost of disposal 4,399,930 Assume that Coronado intends to dispose of the equipment in the coming year. As of December 31, 2020, the equipment has a remaining useful life of 8 years. Coronado uses straight-line depreciation. (a) Prepare the journal entry (if any) to record the impairment of the asset...

Presented below is information related to equipment owned by Novak Company at December 31, 2020. Cost...

Presented below is information related to equipment owned by Novak Company at December 31, 2020. Cost $11,250,000 Accumulated depreciation to date 1,250,000 Expected future net cash flows 8,750,000 Fair value 6,000,000 Novak intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $25,000. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the...

Question