What is the amount of impairment on the equipment

Assignment Help Accounting Basics
Reference no: EM132007196

Question - Oh No! inc. uses a special piece of equipment in its packaging business. The equipment was purchased on 1/1/2002 for $6,000,000 and had an estimated useful life of 6 years and no salvage value. On december 31, 2003, new technology was introduced that accelerated the obsolescence of Oh No!'s equipment. The controller estimates that expected future net cash flows on the equipment will be $3,250,000 and that the fair value of the equipment is $3,000,000. What is the amount of impairment on the equipment?

Reference no: EM132007196

Questions Cloud

Calculate the forward exchange rate the bank will provide : You obtain information from your bank on the forward exchange rate contract and given the following information.
What should be reported as total intangible assets : In the preparation of Banner's balance sheet as of December 31, 2004, what should be reported as total intangible assets
Calculate the arithmetic average returns for large-company : Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (
What is the firm market value weight of debt : a) What is the firm's market value weight of debt, market value weight of preferred stock and market value weight of equity?
What is the amount of impairment on the equipment : Oh No! inc. uses a special piece of equipment in its packaging business. What is the amount of impairment on the equipment
Bonds make semiannual payments : Debt: 8,800 8.1 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 103.5 percent of par; the bonds make semiannual payments
How low would the interest rate on the loan : How low would the interest rate on the loan with the compensating balance have to be for you to choose it?
How much can you withdraw each year : If your retirement investments return 4%, how much can you withdraw (in real terms) each year?
Determine the effect of the change : Determine the effect of the change and prepare the appropriate journal entry to record ABC Co.'s Income tax expense for 2011

Reviews

Write a Review

Accounting Basics Questions & Answers

  What red flags did the auditors miss

What steps does an auditor ordinarily take when confirming cash balances held on deposits with financial institutions?

  Calculate amount of direct labor cost assigned to each job

Johnson Products had the following labor time tickets for the month of February. Calculate the amount of direct labor cost assigned to each job

  Express the given comparative income statement

Express the following comparative income statements in common-size percents and assess whether or not this company's situation has improved in the most recent.

  Value of a two-month european

What should be the value of a two-month European call option with an exercise price of Rs 65? What is the value of a two-month European put option with an exercise price of Rs 65?

  Prepare a post closing trialbalance

Prepare the closing entries. Melissa did not make any additional investments during the year.

  Calculate anderson turnover ratios

The 2016 income statement of Anderson Medical Supply Company reported net sales of $8 million, Calculate Anderson's turnover ratios for 2016

  Plot and comment on the estimated cost function

Estimate the cost function for the quarterly data using the high-low method. Plot and comment on the estimated cost function.

  During the year equipment was sold for 9700 cash this

presented below and on the next page are the ?nancial statements of rajesh company. rajesh company comparative balance

  Compute the amount of gain or loss for hudsons pension plan

Compute the amount of the gain or loss for Hudson's pension plan at the beginning of 2016. Assuming that Hudson uses the corridor approach.

  Escribe how the objectives are to be achieved

PRS303 - Public Relations Management and Tactics Assignment. Strategy must describe how the objectives are to be achieved; it is the broad idea and key messages

  Difference between restricted fund balance and assigned fund

What is the purpose of reporting fund balance in five classifications? What is the difference between Restricted fund balance and Assigned fund balance?

  Financial statement information for the current fiscal

For GAAP purposes, the company provides an allowance equal to 1% of its gross sales each year to account for the warranties

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