Prepare the journal entry to record this increase in value

Assignment Help Financial Management
Reference no: EM132316982

Question

The management of Oriole Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence.

This equipment has a cost of $1,035,000 with depreciation to date of $460,000 as of December 31, 2017. On December 31, 2017, management projected its future net cash flows from this equipment to be $345,000 and its fair value to be $264,500. The company intends to use this equipment in the future.

Prepare the journal entry (if any) to record the impairment at December 31, 2017.

Prepare the journal entry (if any) to record this increase in fair value.

Reference no: EM132316982

Questions Cloud

Withdrawing large volumes of money from financial : Would a series of bank runs in a country (people rapidly withdrawing large volumes of money from financial institutions) decrease the total quantity of M3?
Safeguarding businesses against unethical practice : Many people believe that accrual accounting provides more opportunities for unethical behavior than cash-basis accounting and can you
What are the dividends received by the preferred and common : In 2020, $109200 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2020?
It is not good to mix social life and professional life : It is not good to mix social life and professional life? Is this statement true or false? Why ? Explain Give example
Prepare the journal entry to record this increase in value : The management of Oriole Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence.
Wage increase in the supply of cars : With the aid of a well labelled diagram, explain the effect of the wage increase (ceteris paribus) on the supply of cars?
Categories of price elasticity of demand : With the aid of well labelled diagrams, explain the FIVE (5) categories of price elasticity of demand.
Price elasticity demand for clothing in country : Briefly explain ANY TWO (2) determinants of the price elasticity demand for clothing in your country?
Demand curve facing a monopolist : Why is the demand curve facing a perfectly competitive firm is assumed to be perfectly elastic (i.e., horizontal at the going market price) and the demand curve

Reviews

Write a Review

Financial Management Questions & Answers

  Capital asset pricing model to estimate risk for real estate

An analyst who looks at real estate decides to apply the capital asset pricing model to estimate the risk (beta) for real estate.

  Used to understand the volatility of the stocks

Wall Mart Beta can be used to understand the volatility of the stocks. Understanding volatility is important for a better understand of the risks taken at any one time and not taking on more or less risk than originally planned.  Understanding volati..

  Amount of money at risk impact the riskiness of investment

Does the amount of money at risk impact the riskiness of an investment? Explain?

  What is the lowest possible strike price it could have

If a one-year European put option has a negative time value, what is the lowest possible strike price it could have?

  Explain how you could revise your spending

Explain how you could revise your spending now so that you would have more income that could be used for financial planning purposes.

  Any ethical considerations

Do you believe there are any ethical considerations in slowing payments to your suppliers for the sake of increasing your company's bank balances?

  Calculate average return and standard deviation for market

Calculate the average return and standard deviation for the market and the stock.

  Estimate of the effect of the tax cut on consumption

What is your best estimate of the effect of the tax cut on consumption? - What assumptions are required for that to be the right estimate of the effect of the tax cut? Explain.

  How much would that add to the value of the portfolio

Consider a portfolio manager whose portfolio has $5 billion in assets. how much would that add to the value of the portfolio?

  Estimating your company external financing

You are estimating your company's external financing needs for the next year. At the end of the year you expect that owners' equity will be $80 million, total assets will amount to $170 million, and total liabilities will be $70 million. How much wil..

  Find the value of this american put option

For the situation considered in the earlier problem, what is the value of a six-month European put option with a strike price of $51?

  Assumptions of black-scholes-merton option-pricing model

Which of the following is an assumptions of the Black-Scholes-Merton (BSM) option-pricing model?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd