Prepare the journal entry to record the impairment

Assignment Help Financial Accounting

Reference no: EM13165662

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.

Required:

(a) Prepare the journal entry (if any) to record the impairment at December 31, 2010.

(b) Prepare any journal entries for the equipment at December 31, 2011.

Reference no: EM13165662

Questions Cloud

State important raw material for the dye industry : Nitrobenzene, C6H5NO2, an important raw material for the dye industry, is prepared from benzene, C6H6, and nitric acid. When 22.4g of benzene and an excess of HNO3

State what is the ksp of the salt : The resulting equilibrium solution has a pH of 10.21. What is the Ksp of the salt at 22 °C?

State how does the ability of permanganate : how does the ability of permanganate (VII) ( when being reduce to Mn2+) to oxidize aqueous chloride , bromide or iodide ions change?

Determine the kelvin temperature required : Determine the Kelvin temperature required for 0.0470mol of gas to fill a balloon to 1.20L under 0.988atm pressure.

Prepare the journal entry to record the impairment : Prepare the journal entry to record the impairment at December 31, 2010 and prepare any journal entries for the equipment at December 31, 2011.

What would be the ieee 754 single precision binary represent : What would be the IEEE 754 single precision binary representation of the floating point value -314159265.3589? Express your final answer as an 8-hexdigit number and explain how your answer was obtained for full credit

Calculate the concentration of ascl3 in solution c : Calculate the number of molecules of AsCl3 that would be in 1 mL of Solution C at this concentration. Look at your answer. This is the average number per mL. But what is the most likely number (ie integer) of molecules of AsCl3 in 1 mL?

State a collapsed balloon is filled with he to a volume : A collapsed balloon is filled with He to a volume of 11.2L at a pressure of 1.00 atm. Oxygen (O2) is then assed so that the final volume of the ballon is 21

Write a recursive method called maxsum : write a recrusive method called maxSum that accepts a list of integers. L, and an integer limit n as parameters and use backtracking to find the maximum sum that can be generated by adding elements of L that do not exceed n.

User Account

All Pages