PART A (8 marks) On January 1, 2018, Kamloops Corporation purchased equipment for $15,500. Kamloops...
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PART A (8 marks) On January 1, 2018, Kamloops Corporation purchased equipment for $15,500. Kamloops Corporation expected the equipment to remain in service for 4 years and have a residual value of $1,500. Kamloops Corporation amortized the equipment using double-declining-balance depreciation. On June 30, 2020, Kamloops Corporation sold the equipment for $3,750 cash. Requirements Prepare journal entries on June 30, 2020, to 1) record depreciation expense for the six months ended June 30, 2020, and 2) to record sale of the equipment. Round to the nearest dollar. Dates required. PART B (4 marks) At year end on Dec 31, 2020, Kamloops Corporation reviewed all of its property, plant and equipment assets for impairment. It discovered that its boiler's carrying amount exceeded its recoverable value by $5,500. Another one of its assets, a warehouse building previously written down for an impairment of $12,750 experienced a financial recovery. Requirements Prepare the required adjustments. Note Kamloops Corporation is a publicly traded corporation that reports under IFRS
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