nt CALCULATOR FULL SCREEN PRINTER VERSION BACK ! NE Problem 11-9 (Part Level Sub

Question

nt CALCULATOR FULL SCREEN PRINTER VERSION BACK ! NE Problem 11-9 (Part Level Submission) Riverbed Company uses special strapping equipment in its packaging business. The equipment was purchased in Jar of 8 years with no salvage value. At December 31, 2017, new technology uary 2016 for $10,700,000 and had an estimated useful life equipment. Riverbed's controller as introduced that would accelerate the obsolescence of Riverbed's eq estimates that expected future net cash flows on the equipment will be $6,741,000 and that the fair value of the equipment is $5,992 equipment, but it is estimated that the remaining useful life is 4 years. Riverbed uses straight-line depreciation. Your answer is partially correct. Try again. Prepare the journal entry (if any) to record the impairment at December 31, 2017. (If amounts, Credit account titles are automatically indented when amount is entered. Do not indent manually.) the no entry is required, select "No entry" for the account titles and enter 0 for Date Account Titles and Explanation Debit Credit Dec. 31 TAccumulated Depreciation-Equipment 85000 Recovery of Loss from Impairment 85000 Click if you would like to Show Work for this question: Open Shox Work SHOW LIST OF ACCOUN LINK TO TEXT Attempts: 1 of 15 used SAVE FOR LATER Version 4

Explanation / Answer

Riverbed Company a.Prepare the journal entry (if any) to record the impairment at December 31, 2017. Carrying value of asset: $10,700,000 – $2,675,000* = $8,025,000. *($10,700,000 ÷ 8) X 2 Impairment entry: Loss on Impairment a/c                        Dr. 2033000            To Accumulated Depreciation 2033000 (loss of impairment math $8,025,000 – $5,992,000)

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