Cоmputing аnd Assessing Plаnt Asset Impаirment Zeibart Cоmpany purchased equipment fоr $180,000 on July 1, 2019, with an estimated useful life of 10 years and expected salvage value of $20,000. Straight-line depreciation is used. On July 1, 2023, economic factors cause the fair value of the equipment to decline to $72,000. On this date, Zeibart examines the equipment for impairment and estimates $100,000 in future cash inflows related to use of this equipment. a. Compute the impairment loss, if any. ${#1} Enter as a positive number. Enter $0 if the equipment would not be considered impaired. b. Determine the amount of depreciation Zeibart would record for the 12 months from July 1, 2023 through June 30, 2024. ${#2} Hint: Assume no change in salvage value. Round amount to the nearest whole dollar amount c. Prepare the journal entries to record the impairment loss and depreciation expense for the 12-month period. Select 'No debit' and 'No credit' in the Account fields of the first entry if there was no impairment. Account Debit Credit {#3} {#4} {#5} {#6}
Cоmputing Strаight-Line аnd Dоuble-Declining-Bаlance DepreciatiоnOn January 2, Dechow Company purchased a machine to help manufacture a part for one of its key products. The machine cost $196,830 and is estimated to have a useful life of six years, with an expected salvage value of $21,060. Compute each year’s depreciation expense for the first and second year for each of the following depreciation methods.Round answers to the nearest whole dollar amount. a. Straight-line Year 1 ${#1} Year 2 ${#2} b. Double-declining-balance (Do not round the depreciation rate used in your calculations.) Year 1 ${#3} Year 2 ${#4}
Determining Whether tо Cаpitаlize оr Expense Fоr eаch of the following items, indicate whether the cost should be capitalized (C) or expensed (E) immediately: a. Paid $600 for routine maintenance of machinery b. Paid $2,700 to rent equipment for two years c. Paid $1,000 to equip the production line with new instruments that measure quality d. Paid $10,000 to repair the roof on the building e. Paid $800 to refurbish a machine, thereby extending its useful life f. Purchased a patent for $2,500 a. {#1} b. {#2} c. {#3} d. {#4} e. {#5} f. {#6}