Record the impairment loss at december

Assignment Help Accounting Basics
Reference no: EM132716498

Rhino Corporation is a manufacturer of automobile parts. Its capital assets include specialized equipment that is being used in the finishing stage of its manufacturing process.

The equipment was purchased in 2020 and is being depreciated using the units-of-production method. By December 31, 2021, the book (carrying) value was $430,000 (after depreciation expense had been recorded). However, at that time, Rhino became aware of new technology that would make the equipment obsolete within the next five years. An appraisal puts the equipment's future undiscounted net cash flows at $390,000 and its fair value at $300,000. While considering its options for the eventual replacement, Rhino will continue using the equipment, but will change to straight-line depreciation.

Assuming Rhino is a private Canadian corporation,

Problem a) You would like the journal entry, if any, to record the impairment loss at December 31, 2021.

Problem b) You would like the journal entries to record 2022 and 2023 depreciation.

Reference no: EM132716498

Questions Cloud

What is the variable cost per unit : The chairwoman of the cookbook development committee estimated that the club needed to sell 800 books to break even. What is the variable cost per unit
What portions of a company annual report are most important : What portions of a company's annual report are most important and informative-the narrative (i.e. letter to the shareholders, notes to the financials, etc.)
Which was available on the website of mckinsey company : The following quote appeared quote appeared in article entitled 'Business and society in the coming decades'. Which was available on the website of McKinsey.
Compute the current break-even sales : The unit variable cost is $4,400, and the total fixed costs are $23,400,000. Compute the current break-even sales (units)
Record the impairment loss at december : Assuming Rhino is a private Canadian corporation, You would like the journal entry, if any, to record the impairment loss at December 31, 2021.
Technology takes sides : Identify an example of how new communication technologies have had an impact on the world stage and the impact it made.
Describe what information you need to communicate : You are the marketing manager and you have a new marketing assistant joining your team. Describe what information you need to communicate for the new assistant.
Compute the sales required to realize operating income : For the current year ended March 31, Cosgrove Company expects fixed costs of $27,600,000, Compute the sales required to realize operating income
Discuss to ensure processing inventory transactions handled : Discuss at least three (3) things you can do to ensure that processing inventory transactions are handled efficiently and effectively in QuickBooks.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd