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
Stratified Sampling: If the population from which a sample is to be drawn does not constitute a homogenous group, then stratified sampling technique is applied so as to obtain a re

Two functions of Accounting. Accounting Purchase only:  In the guides of Records only a transaction which is relevant to some cash value can be registered.  Posting: The Expl

SCENARIO It is proposed to construct a 3m diameter, 50m long tunnel, heading 0950, through the andesite lava flow at Maori Bay (Muriwai). As part of the preliminary investigati

Can the Depreciation on Assets be recorded in Single Entry system? No, it cannot be possible. What do you mean by Computer Hardware? The computer is made with different co

Can you provide me a study guide for accounting please? Can you give me picture examples & instructions on how to do things that are really easy to understand? I need this for doin

Discrete Standard Deviation For calculating standard deviation in discrete series any of the following methods may be applied (1) Actual mean method. (2) Assumed mean method. (

Questions 1. A genetic experiment with peapods resulted in one sample of offspring that consisted of 443 green peapods and 170 yellow peapods.  Construct a 95% confidence inter

What is a hypothesis test? Why do we need to use them to make decisions about relating sample results to the population; why can’t we just make our decisions by the sample value?

For the month of June, Department A of Pauley Inc. had a segment margin ratio of 15%, a variable expense ratio of 60% of sales, and traceable fixed expenses of $15,000. Department

Mr. Palsson plans to buy a MacBook Pro which can hold the 6GB of RAM (he has a 4GB chip laying around, so he doesn't care what RAM is actually in the computer, as long as the compu