On December 31, 2022, Belt Enterprises must measure its impairment loss for plant and equipment. Belt has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discountedcash flows, and fair values of the plant and equipment are listed below:EEE (Click the icon to view the cash flows and fair values.)Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment.Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or parentheses for any loss amounts.)Plant andEquipmentLess:Impairment LossNext, prepare the journal entry necessary to record the impairment. (Record debits first, then credits. Exclude explanations from any joDecember 31, 2022AccountDetermine the revised annual depreciation expense.The annual depreciation expense isData tableCostLess: Accumulated Depreciation/AmortizationCarrying valueFuture cash flows (occurring at the end ofeach year)Remaining LifeFair value123456Total undiscounted future cash flowsTotal discounted future cash flows at 5%Year202320242025202620272028Plant and EquipmentAsset Group$$S$$$4,270,000(2,135,000)2,135,000670,000500,000390,0000001,560,0001,428,5071,233,000

Impairment loss occurs when the carrying value of an asset is higher than the recoverable value of…

On December 31, 2022, Belt Enterprises must measure its impairment loss for plant and equipment. Belt has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted cash flows, and fair values of the plant and equipment are listed below: (Click the icon to view the cash flows and fair values.) Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment. Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or parentheses for any loss amounts.) Plant and Equipment Less: Cm Impairment Loss Next, prepare the journal entry necessary to record the impairment. (Record debits first, then credits. Exclude explanations from any joi December 31, 2022 Account Determine the revised annual depreciation expense. The annual depreciation expense is Data table Cost Less: Accumulated Depreciation/Amortization Carrying value Future cash flows (occurring at the end of each year) Remaining Life Fair value 1 2 3 4 5 6 Total undiscounted future cash flows Total discounted future cash flows at 5% Year 2023 2024 2025 2026 2027 2028 Plant and Equipment Asset Group $ $ $ S S S 4,270,000 (2,135,000) 2,135,000 670,000 500,000 390,000 0 0 0 1,560,000 1,428,507 1,233,000

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 66P