What is the book value of the machine on first january

Assignment Help Financial Accounting

Reference no: EM13938780

IMPAIRMENT

On January 1, 2002, the Key West Company acquired a pie-making machine for $50,000. The machine was expected to have a useful life of 10 years with no residual value. Key West uses the straight-line depreciation method. On January 1, 2009, due to technological changes in the bakery industry, Key West believed that the asset might be impaired. Key West estimates the machine will generate net cash flows of $12,000 and has a current fair value of $5,000.

Required:

1. What is the book value of the machine on January 1, 2009?

2. Compute the loss related to the impairment.

3. Prepare the journal entry necessary to record the impairment of the machine.

Reference no: EM13938780

Questions Cloud

Describe the different energy yields of fats, carbohydrate : Identify nephron structure and describe how those structure produce urine. Describe the different energy yields of fats, carbohydrate, and proteins.

Identify fundamental principles of counselling theory : Identify fundamental principles of counselling theory to key ‘change technologies' used within the helping relationship. Appraise and apply the value of listening in the helping role/counselling context. Write a reflective essay evaluating the rol..

Role of dialogue in an organisational context : Each student will prepare a paper reflecting on the role of dialogue in an organisational context. Students are encouraged to draw on their case study experience (i.e. challenges, insights and learning outcomes) as well as to further substantiate ..

Describe the three primary buffering systems : Describe the three primary buffering systems. Compare the compensatory mechanism employed in metabolic acidosis and alkalosis.

What is the book value of the machine on first january : What is the book value of the machine on January 1, 2009? Compute the loss related to the impairment. Prepare the journal entry necessary to record the impairment of the machine.

Report on responsible enterprise and business ethics : Prepare a report on Responsible enterprise and business ethics - please make sure that there is no similarity percentage

Why should we spinphotoresist at the flat part of the spin : Why should we spinphotoresist at the flat part of the spin curve?

Safety inspection of a construction worksite : Conduct and document a safety inspection of a construction worksite. You will need to identify hazards and assess risks at the site, complete an inspection checklist, a JSA and a SWMS, and consult with an on-site supervisor to discuss risk control..

Determine the amount of power dissipated : Determine the amount of power dissipated in 3 kohm resistor? The circuit diagram and question is given in the picture file.

User Account

All Pages