Prepare the journal entry to record the impairment

Assignment Help Accounting Basics

Reference no: EM132086209

Question: Wildhorse Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,100,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2017, new technology was introduced that would accelerate the obsolescence of Wildhorse's equipment. Wildhorse's controller estimates that expected future net cash flows on the equipment will be $6,363,000 and that the fair value of the equipment is $5,656,000. Wildhorse intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Wildhorse uses straight-line depreciation.

Prepare the journal entry (if any) to record the impairment at December 31, 2017.

Reference no: EM132086209

Questions Cloud

The meaning and function of brand audit : Describe the valuable functions brands can perform for a firm, the function of brand tracking studies, and the meaning and function of a brand audit.

Compute wildhorse diluted earnings per share : Wildhorse Corporation reported net income of $359,700 in 2017 and had 54,800 shares of common stock outstanding throughout the year.

Prepare a summary journal entry for revenue recognition : Wild willy sandwich shop sell sandwiches throughout the country. Wws customers can sign up for a reward card that allows them to receive a free sandwich.

How marketer can develop effective brand positioning : Describe how a marketer can develop effective brand positioning. What are the barriers to judicial review? ?

Prepare the journal entry to record the impairment : Wildhorse Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,100,000.

Building corporate entrepreneurship capability : escribe the role commitment , socialization and resources play on building corporate entrepreneurship capability.

Journalize the entry to record the payroll tax expense : Widmer Company had gross wages of $240,000 during the week ended june 17. The amount of wages subject to social security tax was $240,000.

Should wilber succeed on the claims : Wilber and Roger Clement were brothers who formed a partnership. The partnership continued for 40 years until Wilber discovered that his brother.

Prepare a statement of comprehensive income : Wildhorse Corporation reported the following for 2017: net sales $1,227,100, cost of goods sold $725,600, selling and administrative expenses $330,700.

User Account

All Pages