Prepare journal entry to record impairment of asset, Accounting Basics

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Prepare journal entry to record impairment of asset

Presented below is information related to equipment owned by Pujols Company at December 31, 2010.

Cost $11,430,000
Accumulated depreciation to date 1,270,000
Expected future net cash flows 8,890,000
Fair value 6,096,000

As of December 31, 2010, the equipment has a remaining useful life of 4 years. Assume that Pujols intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $25,400.

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2010.

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Accounting Basics: Prepare journal entry to record impairment of asset

Reference No:- TGS090523

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Accounting Basics: Prepare journal entry to record impairment of asset

Reference No:- TGS090523

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Recent Questions Asked Accounting Basics

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Accounting Basics: Prepare journal entry to record impairment of asset

Reference No:- TGS090523

Recent Questions Asked Accounting Basics

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