As of December 31, 2020, Joseph Industries’ Corporate Headqu…
As of December 31, 2020, Joseph Industries’ Corporate Headquarters is capitalized on their balance sheet at a historical cost of $5,000,000 with accumulated depreciation of $1,000,000. Due to a downturn in the market that Joseph operates in, the future cash flows related to their headquarters is $3,000,000 and they just received an offer from Lex Lighting Company to purchase the building for $2,000,000. Assuming Joseph does not sell the building, but does follow appropriate impairment accounting during 2020, what amount of accumulated depreciation will they report on their balance sheet as of December 31, 2021 assuming a remaining 20-year useful life, no salvage value and straight-line depreciation.
Read DetailsCameron, Corp. entered into an exchange transaction with Max…
Cameron, Corp. entered into an exchange transaction with Maxwell Industries as follows: Cameron Corp (old machine) Maxwell Industries (new machine) Historical cost $28,000 $28,000 Accumulated depreciation 19,000 10,000 Fair value 12,500 15,500 At what amount would Cameron Corp. record the new machine on their balance sheet as a result of this exchange transaction?
Read DetailsDuring 2020, Becker Company started a construction project w…
During 2020, Becker Company started a construction project with a contract price of $2,100,000. The following information was available for the project: 2020 2021 2022 Cost incurred to date $450,000 $936,000 $1,500,000 Estimated costs to complete 1,050,000 504,000 – What amount of construction expense will Becker record on their 2021 income statement? (Round intermediate calculations to 4 decimals and final calculations to whole dollars)
Read DetailsBurt’s Bees reported the following information related to th…
Burt’s Bees reported the following information related to their inventory: January 1, 2020 December 31, 2020 FIFO Inventory Value 4,500,000 5,100,000 LIFO Inventory Value 4,300,000 4,600,000 Burt’s reports their inventory using FIFO for internal purposes and then records an adjusting journal entry each year to adjust to LIFO for external financial reporting purposes. The adjusting entry on December 31, 2020 would include:
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