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Problem - JJ Company determined that due to obsolescence, an equipment with an original cost of P4,500,000 and accumulated depreciation on January 1, 2019 of P2, 100,000 had suffered a permanent impairment and as a result should have a recoverable amount of only P1,500,000 as of the beginning of the year. In addition, the remaining useful life of the equipment was reduced from 8 to 3 years.
REQUIRED -
1. Prepare journal entry to record the impairment on January 1, 2019.
2. Prepare journal entry to record the depreciation for 2019. 3. Determine the carrying amount of the equipment on December 31, 2019.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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