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
The Pivot table is as below: Values Row Labels Sum of ID Sum of Risk Level A 69

As part of a study of corporate employees, the Director of Human Resources for PNC wants to compare the distance travelled to work by employees at their office in downtown Edmonton

1. Use the portal method to determine the approximate vertical reactions. Circles represent pinned connections. 2. A steel 2" x 3" rectangular bar is 9' long (E = 29,000ksi

Ask questio How many women must be randomly selected to estimate the mean weight of women in one age group? We want 90% confidence that the sample mean is within 3.7 lbs of the po

Allowable moving costs Except as mentioned in Subsection 60.20.20 and within certain restrictions, allowable moving costs involve the prices associated with moving family products

Someone tries to increase the magnetic field inside a coil by adding more turns to the coil. Where should he add more turns: to the end of the coil (i.e., to make it longer) or to

A and B throw with one dice for a prize of Rs.11 which is to be won by a player who first throws 6. If A has the first throw, what are their respective expectations?

State income tax In most declares paycheck accounting will involve a condition earnings tax. In those declares a company is necessary to hold the condition earnings tax that an

please break this problem down to laymen term so that I understand how you arrived at the answer. 1. AllElectronics caries 1000 products, P1, … P1000. Consider customers Ada, Bob,

formula for calculating paasches quantity index