Presented below is information related to equipment owned by Swifty Company at December 31, 2020. Cost $ 9,270,000 Accumulated depreciation to date 1,030,000 Expected future net cash flows 7,210,000 Fair value 4,944,000 Assume that Swifty will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. The fair value of the equipment at December 31, 2021, is $ 5,253,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Presented below is information related to equipment owned by Swifty Company at December 31, 2020. Cost $ 9,270,000 Accumulated depreciation to date 1,030,000 Expected future net cash flows 7,210,000 Fair value 4,944,000 Assume that Swifty will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. The fair value of the equipment at December 31, 2021, is $ 5,253,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 11P
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Presented below is information related to equipment owned by Swifty Company at December 31, 2020.
Cost | $ 9,270,000 | |
1,030,000 | ||
Expected future net |
7,210,000 | |
Fair value | 4,944,000 |
Assume that Swifty will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years.
The fair value of the equipment at December 31, 2021, is $ 5,253,000. Prepare the
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