Journalize entry to record the asset impairment on december

Reference no: EM13900574

Sunset Resorts, Inc., owns and manages resort properties. On January 15, 2007, one of its properties was found to be adjacent to a toxic chemical disposal site. As a result of the negative publicity, this property's bookings dropped 40% during 2007. On December 31, 2007, the accounts of the company showed the following details regarding the impaired property:

Land	$ 25,000,000
Buildings and improvements (net)	80,000,000
Equipment (net)	15,000,000
Total	$120,000,000

Management decides that closing the resort is the only option. As a result, it is estimated that the buildings and improvements will be written off completely. The land can be sold for other uses for $17 million, while the equipment can be disposed of for $4 million, net of disposal costs.

a. Journalize the entry to record the asset impairment on December 31, 2007.

b. Provide the note disclosure for the impairment.

Reference no: EM13900574

Questions Cloud

Future world economic development : Globalization has been seen by some as beneficial where it is the key to future world economic development, it is irreversible and inevitable.

Provide the journal entry for the restructuring charge : Provide the journal entry for the restructuring charge on November 1, 2007. Provide the entry for the severance payment on December 15, 2007, assuming that the actual tenure.

Critique how well the organization adapts to change : Critique how well the organization adapts to change

Describe the mission vision and goals of the organization : Describe the mission, vision, and goals of the organization and how the organization supports

Journalize entry to record the asset impairment on december : Journalize the entry to record the asset impairment on December 31, 2007. Provide the note disclosure for the impairment.

Evaluate human resource management policies : Evaluate human resource management policies. This includes any recent labor disputes, the use of the local area labor market, and recruitment strategies

Curve between diego and emily data points using arc method : curve between Diego's and Emily's data points using the arc method?

Project about the business communication : project on the Business Communication

Identify the various actors of intergovernmental relations : Case Study- Wichita Confronts Contamination, Susan Rosegrant. Identify the various actors of intergovernmental relations involved in the case

User Account

All Pages