Prepare journal entries, accounting, Basic Statistics

Quick Company acquired a piece of equipment in Year 1 st cost $100,000. The equipment has a 10-year estimated life, zero salvage value and a depreciation of a straight line basis. Technological innovations take place in the industry in which the company operates in Year 4. Quick gathers the following information for the piece of equipment at the end of Year 4: Expected future undiscounted cash flow from continued use - $59,000, Present Value of expected future cash flows from continued use - $51,000, Net Selling price in the used equipment market - $50,000. At the end of Year 6, it is discovered that the technological innovations related to this equipment are not as effective as first expected.Quick estimates the following for this piece of equipment at the end of Year 6: expected future undiscounted cash flow from continued use - $50,000, Present Valus of expected future cash flows from continued use - $44,000, Net Selling price in the used equipment market - $42,000.
Required: a. Discuss whether Quick Company must conduct an impairment test on this piece of equipment at December 31, Year 2004.
b. Determine the amount at which Quick Company should carry this piece of equipment on its balance sheet at December 31, Year 5, December 31, Year 5, and December 31, Year 6. Prepare any related journal entries.
Posted Date: 2/8/2012 1:35:25 AM | Location : United States







Related Discussions:- Prepare journal entries, accounting, Assignment Help, Ask Question on Prepare journal entries, accounting, Get Answer, Expert's Help, Prepare journal entries, accounting Discussions

Write discussion on Prepare journal entries, accounting
Your posts are moderated
Related Questions
For this assignment, you will practice creating null and alternative hypotheses of difference based on the presented scenarios. To complete this assignment, consider the three scen

Anna is considering investing $150,000 by dividing it into three investments. But she is not sure how much to put in each one. The first investment is known to follow a uniform dis

Is the z-square the same as the z-test? what is it used for and how is it different from t-square?

what do you mean by correct and remedy the equipment trouble as instructed by the expert.

what is the difference between HISTORIGRAMS and HISTOGRAMS?

A fox fleeing from a hunter encounters a 0.730 m tall fence and attempts to jump it. The fox jumps with an initial velocity of 7.10 m/s at an angle of 45.0°, beginning the jump 2.1


what is the basic difference between seasonal variation and cyclical variation

what is historigram in statistics please give the problems and there solution in statistics as soon as possible

Question: The weights shown in the figure are in equilibrium. It consists of objects held by vertical strings. The object 3 weighs 1.4 N. The horizontal bars are identical, uniform