Compute the amount of property and equipment that United Presents wrote off as impaired during the year, if any. (Hint: Set up T-accounts.)
Compute the amount of property and equipment that United Presents wrote off as impaired during the year, if any. (Hint: Set up T-accounts.)
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 6QE
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Question
Property, Plant and Equipment
We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on the undiscounted future cash flows. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as appropriate.
Dollars in Millions | |
---|---|
Cost of property and equipment (beginning of year) | $ 54,644 |
Cost of property and equipment (end of year) | 59,766 |
Capital expenditures during the year | 6,510 |
Accumulated |
28,016 |
Accumulated depreciation (end of year) | 29,310 |
Depreciation expense during the year | 2,490 |
Cost of property and equipment sold during the year | 1,388 |
Accumulated depreciation on property sold | 1,196 |
Cash received on property sold | 130 |
Required:
- Compute the amount of property and equipment that United Presents wrote off as impaired during the year, if any. (Hint: Set up T-accounts.)
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