FUND OF FIN ACCT(LL) W/CONNECT ACCESS
6th Edition
ISBN: 9781260522945
Author: PHILLIPS
Publisher: MCG
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Chapter 9, Problem 17E
1.
To determine
Indicate the effects of the 2018 adjustment for
2.
To determine
Prepare an adjustment entry for depreciation expense at the end of 2018.
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Required:
Indicate the effects of the following on the accounting equation. (Enter decreases to account categories as negative amounts and do not round your intermediate calculations.)
1. The adjustment for depreciation at the end of 2019.
2. The two expenditures during 2020 for (a) the major overhaul of the equipment and (b) repairs and maintenance.
What is the depreciation expense of the equipment for 2023?
what is the recoverable amount of the equipment on december 31, 2022
how much is the impairment loss to be reported for 2022?
what is the carrying value of the equipment on dec 31 2022 prior to impairment testing?
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The following information is available about Company DEF's depreciable assets on January 1, 2019 (numbers are in € millions):
Original Cost
€ 50,000
Depreciable Base
€ 47,500
Accumulated Depreciation (1/1/2019)
€ 28,500
Depreciable Life
10 years
An analyst believes that the above described estimates do not reflect the underlying economic depreciation of Company DEF's assets. As a result, the analyst wants to adjust Company DEF's financial statements based on his own estimates. While the analyst assumes that the residual value assumption of Company DEF is correct, the analyst adjusts the depreciable life of the asset. In adjusting the financial statements of Company DEF, the analyst decreases the 1/1/2019 accumulated depreciation by €10687.5.
What is the depreciable life (in years) that the analyst uses in adjusting Company DEF's financial statements?
Chapter 9 Solutions
FUND OF FIN ACCT(LL) W/CONNECT ACCESS
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