Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please i need help show your work please !!also se

Please I need help show your work Please !!Also seperate your answers so it easy...

60.1K

Verified Solution

Question

Accounting

Please I need help show your work Please !!
Also seperate your answers so it easy when reading it !!

IV. (16 points) Obaid Company owned the following equipment at December 31, 2022:

Cost$280,000

Accumulated depreciation 32,000

Expected future net cash flows 200,000

Fair value 136,000

Obaid plans to continue using this asset in the future. As of December 31, 2022, the equipment has a remaining useful life of 4 years.

Requirement:

a. Is the asset considered impaired for accounting purposes? Show how you determined this.

b. Prepare the journal entry to record impairment, if one is required. If no impairment, write

not applicable.

c. Obaid computes depreciation using the straight-line method. Prepare the journal entry to

record depreciation expense for 2023, assuming no residual value.

d. At the end of 2023, the fair value of the equipment had increased to $205,000. Prepare the

journal entry to record the increase in fair value according to U.S. accounting standards.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Determine the tax liability for tax year 2017 in each of thefollowing instances. In...

Accounting
Q

How does network development relate to the work breakdown schedule (WBS)? how is the WBS related...

General Management
Q

12. EX.17-12.ALGO Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for...

Accounting
Q

The structure ofenzymes that justincludes folding ANDtwisting is called asecondary structure.A. beta pleatB. alpha helixC....

Biology
Q

Choose ALL of the correct responses to the release of Parathyroid hormone Blood calcium levels...

Biology
Q

1 100 V 50 Hz 3 150 V 50 Hz 4 200 V TC 4...

Physics
Q

Find the exact value of the expression cos tan 40 9

Calculus
Q

2 Use Substitution to solve format your answers as fractions if necessary 40y 5x 15...

Algebra
Q

John has been gathering information from a variety of sources, including a manager's subordinates, in...

Accounting
Q

27) The liability created when a business collects cash from customers in advance of completing...

Accounting
Q

***Please show how to get answer*** 32. How would the following transaction affect the...

Accounting
Q

Calculating the Cost of Debt and WACC Some problems in this chapter may require many...

Finance