On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment. Delater has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or par Plant and Equipment $ (2,145,000) 1,230,000 $ (915,000) Carrying value Less: Fair value Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then c December 31, 2022 2,145,000 915,000 Account Accumulated Depreciation-Plant and Equipment Impairment Loss on Plant and Equipment Plant and Equipment Determine the revised annual depreciation expense The annual depreciation expense is $ 410,000. 3,060,000 Data table Cost Less: Accumulated Depreciation/Amortization Carrying value Future cash flows (occurring at the end of each year) Remaining Life 1 2 3 4 5 6 Total undiscounted future cash flows Total discounted future cash flows at 5% Fair value Plant and Equipment Asset Group $ $ Year 2023 $ 2024 2025 2026 2027 2028 $ $ $ 4,290,000 (2,145,000) 2,145,000 700,000 470,000 381,000 0 0 0 1,551,000 1,422,093 1,230,000 -X
On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment. Delater has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or par Plant and Equipment $ (2,145,000) 1,230,000 $ (915,000) Carrying value Less: Fair value Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then c December 31, 2022 2,145,000 915,000 Account Accumulated Depreciation-Plant and Equipment Impairment Loss on Plant and Equipment Plant and Equipment Determine the revised annual depreciation expense The annual depreciation expense is $ 410,000. 3,060,000 Data table Cost Less: Accumulated Depreciation/Amortization Carrying value Future cash flows (occurring at the end of each year) Remaining Life 1 2 3 4 5 6 Total undiscounted future cash flows Total discounted future cash flows at 5% Fair value Plant and Equipment Asset Group $ $ Year 2023 $ 2024 2025 2026 2027 2028 $ $ $ 4,290,000 (2,145,000) 2,145,000 700,000 470,000 381,000 0 0 0 1,551,000 1,422,093 1,230,000 -X
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 66P: At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been...
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