Solution-Prepare the journal entries for depreciation of

Prepare the journal entries for depreciation of equipment

Reference no: EM131804913

Rohan Company purchased equipment in January 2008 for $8,000,000 and had an estimated useful life of 6 years with a salvage value of $2,000,000. At December 31, 2010, new technology was introduced that would accelerate the obsolescence of Rohan's equipment. Rohan's controller estimates that expected future net cash flows on the equipment will be $4,900,000 and that the fair value of the equipment is $4,600,000. Rohan intends to continue using the equipment, but it is estimated that the remaining life is 2 years and new salvage value is $1,000,000. Rohan uses straight-line depreciation.

(a) Prepare any journal entries for the depreciation of the equipment at December 31, 2011.

(b) Assume that Rohan used the double-declining balance method of depreciation, prepare the journal entry (if any) to record the impairment at December 31, 2010.

(c) Assume that Rohan used the double-declining balance method of depreciation, prepare the journal entries for the depreciation of the equipment at December 31, 2011.

Reference no: EM131804913

Questions Cloud

Create the slide content to be interesting : Create the slide content to be interesting, visual, and engaging. Watch videos (below) for what that entails and how to use SmartArt, etc.

Compute the company predetermined overhead rate : The actual labor hours for the year turned out to be 33,300. Compute the company's predetermined overhead rate

Social media and ashton kutcher : Read through the case titled "Social Media and Ashton Kutcher" located on page 122 of your textbook. Thoroughly answer 4 of the 6 questions

Research and critical thinking analysis : Discuss their successes, vulnerabilities and where they should go in the future based on your Internet research and critical thinking analysis.

Prepare the journal entries for depreciation of equipment : the double-declining balance method of depreciation, prepare the journal entries for the depreciation of the equipment

Finding the mean squared error : The mean squared error (MSE) for the forecast developed using? trend-adjusted exponential smoothing is________ (thousand dollars) sq.

Prepare a properly classified balance sheet : Prepare a properly classified balance sheet in report form for Bighorn Corporation as of December 31, 2012

Principles in the decision making process : Moral integrity is the implementation of ones principles in the decision making process in terms of what is right or wrong with respect to honesty and truthfuln

What does each section tell you about a companys operations : Why are companies required to prepare a statement of cash flows? What does each section tell you about a company's operations?

User Account

All Pages

Prepare the journal entries for depreciation of equipment

Reference no: EM131804913

Reference no: EM131804913

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT