Volkswagen Group reported the following information for property, plant, and equipment, along with additions, disposals, depreciation, and impairments, for a recent year-end (euros in millions). Property, plant, and equipment, net . €46,169 Additions to property, plant, and equipment . 11,560 Disposals of property, plant, and equipment . 2,430 Depreciation on property, plant, and equipment . €7,509 Impairments to property, plant, and equipment 143 1. Prepare Volkswagen’s journal entry to record depreciation. 2. Prepare Volkswagen’s journal entry to record additions assuming they are paid in cash and are treated as “betterments (improvements)” to the assets. 3. Prepare Volkswagen’s journal entry to record €2,430 in disposals assuming it receives €720 cash in return and the accumulated depreciation on the disposed assets totals €1,195. 4. Volkswagen reports €143 of impairments. Do these impairments increase or decrease the Property, Plant, and Equipment account? By what amount?
Volkswagen Group reported the following information for property, plant, and equipment, along with
additions, disposals,
Additions to property, plant, and equipment . 11,560
Disposals of property, plant, and equipment . 2,430
Depreciation on property, plant, and equipment . €7,509
Impairments to property, plant, and equipment 143 1. Prepare Volkswagen’s
2. Prepare Volkswagen’s journal entry to record additions assuming they are paid in cash and are treated
as “betterments (improvements)” to the assets.
3. Prepare Volkswagen’s journal entry to record €2,430 in disposals assuming it receives €720 cash in
return and the
4. Volkswagen reports €143 of impairments. Do these impairments increase or decrease the Property,
Plant, and Equipment account? By what amount?
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