Reference no: EM132761233
Question: Dolphin Company uses special strapping equipment in its packaging business. The equipment was purchased in January 20X3 for $8,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 20X4, new technology was introduced that would accelerate the obsolescence of Dolphin's equipment. Dolphin's controller estimates that expected future net cash flows on the equipment will be $5,000,000 and that the fair value of the equipment is $4,400,000. Dolphin intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Dolphin uses straight-line depreciation.
Instructions: (a) What is the carrying value of the asset?
(b) Prepare the journal entry (if any) to record the impairment at December 31, 20X4.
(c) Prepare journal entries for the equipment at December 31, 20X5. The fair value of the equipment at December 31, 20X5, is estimated to be $4,600,000.
|
What is the bonds price
: A bond has 12 years remaining to maturity, and pays interest annually. The par value is $1000. The coupon rate is 7%, and the bond yield is 9%.
|
|
Why the atp molecule releases energy
: Explain, based on the actual structure, why the ATP molecule releases energy when it is hydrolyzed
|
|
Discuss the individual contributions
: Discuss the individual contributions that could be made by a cross-functional team to the following list of activities.
|
|
What is the Purpose of a Quality Control System
: What is the Purpose of a Quality Control System? List the six elements of quality control and provide one example of a policy or procedure
|
|
What is the carrying value of the asset
: Dolphin Company uses special strapping equipment in its packaging business. The equipment was purchased in January 20X3 for $8,000,000 and had an estimated.
|
|
Difference between containerization and intermodalism
: What is the difference between containerization and intermodalism?
|
|
How much sales revenue did the company earn during the year
: How much sales revenue did the company earn during the year? newly established company has the following financial statement figures
|
|
Prepare journal entries to record initial capital investment
: The profit of $200,000 for the year ended 31 December 2020 is to be allocated assuming a $20,000 salary to P and a $15,000 salary to Q. The partners will also.
|
|
Describe the movement of an atom of nitrogen
: Describe the movement of an atom of nitrogen from the leaf of a plant, through the process of decomposition, and back into the root of another plant.
|