Need #24 answered and explained, please. 23. Transmountain Oil Company acquired 4 leases during...
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Need #24 answered and explained, please.
23. Transmountain Oil Company acquired 4 leases during the year Each lease is considered to be individually insignificant. Transmountain's policy is to provide a year-end allowance equal to 70% of all individually insignificant leases. The allowance account had a $45,000 impairment at the end of the year. Record the journal entries to account for the impairment. tal leases is1,570,000 lowance for impairment is 70% of 1,570,000=1,099,000 lowance account had 45,000 impairment at the end of year ditional impairment required =1,099,0045,000=1,054,000 24. Refer to problem 23 above. Assume Transmountain amortizes the impairment for insignificant property over a 5 year period using straight line amortization. Use the 70% as the total amount estimated to be impaired
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