Reference no: EM13752170
Dolphin Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2013 for $8,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2014, new technology was introduced that would accelerate the obsolescence of Dolphin's equipment. Dolphin's controller estimates that expected future net cash flows on the equipment will be $5,000,000 and that the fair value of the equipment is $4,400,000. Dolphin intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Dolphin uses straight-line depreciation.
A. What is the depreciable base of the asset at the end of 2nd year?
B. Prepare the journal entry (if any) to record the impairment at December 31, 2014.
C. Prepare any journal entries for the equipment at December 31, 2015. The fair value of the equipment at December 31, 2015, is estimated to be $4,600,000.
D. Prepare the journal entry (if any) to record the impairment at December 31, 2014. Assuming that Roland intends to dispose of the equipment and that it has not been disposed of as of December 31, 2015.
|
Bad debt expense-end-of-period adjustment
: Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 percent of credit sales would result in uncollectible accounts. Before the end-of..
|
|
What can be done to ensure its effectiveness
: What are some reasons why on-the-job training can prove ineffective? What can be done to ensure its effectiveness?
|
|
Additional manufacturing facilities located in nebraska
: Crescent Manufacturing Inc. (CMI) is a luxury leader in crafted and customized home furnishings. The corporate headquarters and a production facility are located in Texas, with additional manufacturing facilities located in Nebraska and Maryland.
|
|
Identify the types of market systems
: Provide a company overview, and identify the countries in which the corporation operates. Identify the types of market systems and types of legal systems that exist in the countries where the corporation operates. What effect do these have on the com..
|
|
Special strapping equipment in its packaging business
: Dolphin Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2013 for $8,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2014, new technology was introdu..
|
|
Rewrite code especially for each type of hardware platform
: Portability is the ability of software to move easily from one hardware platform to another. UNIX was the first portable operating system, allowing programs to compile on multiple hardware platforms without the need for the programmer to rewrite code..
|
|
Using the straight-line depreciation method
: lansbury company purchases equipment on January 1, year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a salvage value of $40,000.
|
|
Production data for a process costing system
: Following are production data for a process costing system. Compute EUP for DM and CC if DM costs are incurred evenly throughout production. Using the weighted average, prepare a process costing report.
|
|
Examines the quality theory''s major concepts
: Complete the Theory Matrix, which examines the quality theory's major concepts, the process of the theory, process-driven and customer-driven quality requirements and an example of a company that has applied that particular theory.
|