# After recording depreciation for the current year, Media Mania Incorporated decided to discontinue using its printing equipment. The equipment had cost $750,000, accumulated depreciation was $550,000, and its fair value (based on estimated future cash flows from selling the equipment) was $50,000. Determine whether the equipment is impaired. Prepare the journal entries to record the impaired asset.

1 answer

###### Question:

After recording depreciation for the current year, Media Mania Incorporated decided to discontinue using its printing equipment. The equipment had cost $750,000, accumulated depreciation was $550,000, and its fair value (based on estimated future cash flows from selling the equipment) was $50,000. Determine whether the equipment is impaired. Prepare the journal entries to record the impaired asset.

## Answers

Answer:The fair value is $200,000 and the book value is $150,000. Therefore the asset is impaired.Journal EntryExplanation:Cost of Equipment $750,000Less: Accumulated Depreciation $550,000Book Value of equipment a $200,000Less Fair Value b $50,000Impairment Loss(a-b) $150,000The Journal Entry is shown below:-Accumulated Depreciation Dr, $550,000 To Equipment $550,000(Being to remove accumulated depreciation on equipment is recorded)Impairment Loss Dr, $150,000 To Equipment $150,000(Being impairment loss on equipment is recorded)

#### Similar Solved Questions

1 answer

### Solid substance A has a melting point of 100°C. Liquid substance B has a freezing point of 110°C. For each substance, identify its state of matter and describe the motion of its particles when the substance is at 115°C.

Solid substance A has a melting point of 100°C. Liquid substance B has a freezing point of 110°C. For each substance, identify its state of matter and describe the motion of its particles when the substance is at 115°C....

2 answers

### The Voyager and the Ballad are sail boats. The Voyager and the Ballad start at the same point and travel away from each other in opposite directions. The Voyager travels at 14 mph, and the Ballad travels at 19 mph. How far apart will they be in 3 hours?The Voyager will have travelled _____ miles.The Ballad will have travelled _____ miles.They will be _____ miles apart.

The Voyager and the Ballad are sail boats. The Voyager and the Ballad start at the same point and travel away from each other in opposite directions. The Voyager travels at 14 mph, and the Ballad travels at 19 mph. How far apart will they be in 3 hours?The Voyager will have travelled _____ miles.Th...

1 answer

### Jose’s hear beats an average of 94 beats per minute.Estimate the number of beats his heart beats in a day

Jose’s hear beats an average of 94 beats per minute.Estimate the number of beats his heart beats in a day...

1 answer

### ____ refers to experimenting with work first and then deciding on a path instead of doing all the ethical considering up front. job hopping job depth job enrichment job enlargement job rotation

____ refers to experimenting with work first and then deciding on a path instead of doing all the ethical considering up front. job hopping job depth job enrichment job enlargement job rotation...

1 answer

### The Sardinian's eat unleavened wheat, grass feed beef to make cheese and foods full of Polyphenols

The Sardinian's eat unleavened wheat, grass feed beef to make cheese and foods full of Polyphenols...

1 answer

### What is the result when 1/8x - 2 5/7 is subtracted from 3 1/4x + 7 1/14

What is the result when 1/8x - 2 5/7 is subtracted from 3 1/4x + 7 1/14...

1 answer

### I WILL GIVE YOU 25 POINTS!! I AM STUCK ON THIS ONE PROBLEM!!What is the crowding-out effect? the loss of funds for private investment due to government borrowing a situation in which the government spends more than it takes in all the money the federal government owes to bondholders a situation in which the government takes in more than it spends

I WILL GIVE YOU 25 POINTS!! I AM STUCK ON THIS ONE PROBLEM!!What is the crowding-out effect?
the loss of funds for private investment due to government borrowing
a situation in which the government spends more than it takes in
all the money the federal government owes to bondholders
a situation ...

1 answer

### Which route did pedro alvares cabral take in his attempt to reach india

which route did pedro alvares cabral take in his attempt to reach india...

1 answer

### After stepping into a room with unusual lighting, Kelsey's pupil has a radius of 3 millimeters. What is the pupil's area?

After stepping into a room with unusual lighting, Kelsey's pupil has a radius of 3 millimeters. What is the pupil's area?...

1 answer

### Laws, policies, and their associated penalties only provide deterrence if, among other things, potential offenders fear the probability of a penalty being applied. _________________________

Laws, policies, and their associated penalties only provide deterrence if, among other things, potential offenders fear the probability of a penalty being applied. _________________________...

1 answer

### Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $5,200 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,000 dozen more donuts each year. The company realizes a contribution margin of $2.40 per dozen donuts sold. The new machine would have a six-year useful life. Click he

Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $5,200 per year. In addition, the new machine would allow the company to produce one new style of...

1 answer

### Identify the slope of the graphed line: Identify the y-intercept of the graphed line: Identify the slope of the line given by the equation: Identify the y-intercept of the line given by the equation: y=1/2x - 1

Identify the slope of the graphed line:
Identify the y-intercept of the graphed line:
Identify the slope of the line given by the equation:
Identify the y-intercept of the line given by the equation:
y=1/2x - 1...

1 answer

### A tank with a capacity of 2000 L is full of a mixture of water and chlorine with a concentration of 0.01 g of chlorine per liter. In order to reduce the concentration of chlorine, fresh water is pumped into the tank at a rate of 20 L/s. The mixture is kept stirred and is pumped out at a rate of 50 L/s. Find the amount of chlorine in the tank as a function of time.(Let y be the amount of chlorine in grams and t be the time in seconds.)

A tank with a capacity of 2000 L is full of a mixture of water and chlorine with a concentration of 0.01 g of chlorine per liter. In order to reduce the concentration of chlorine, fresh water is pumped into the tank at a rate of 20 L/s. The mixture is kept stirred and is pumped out at a rate of 50 L...

1 answer

### What is a question that is a fraction divided by a whole number?

What is a question that is a fraction divided by a whole number?...

1 answer

### Identify the values of x and y that make the equation 2x + 5i = 16 + (2y)i true. HELP ASAP!!

Identify the values of x and y that make the equation 2x + 5i = 16 + (2y)i true. HELP ASAP!!...

2 answers

### To protect the Panama Canal, Roosevelt issued this to remind Europeans that the U.S. held to the Monroe Doctrine. labor laws Roosevelt Corollary 17th amendment Treaty of Paris of 1898

To protect the Panama Canal, Roosevelt issued this to remind Europeans that the U.S. held to the Monroe Doctrine.
labor laws
Roosevelt Corollary
17th amendment
Treaty of Paris of 1898...