ACC 304 All Assignments ACC 304 All Assignments | Page 193

4) A machine cost $221,400, has annual depreciation expense of
$44,280, and has accumulated depreciation of $110,700 on December
31, 2014. On April 1, 2015, when the machine has a fair value of
$87,070, it is exchanged for a similar machine with a fair value of
$281,600 and the proper amount of cash is paid. The exchange lacked
commercial substance.
Prepare all entries that are necessary at April 1, 2015. (Credit account
titles are automatically indented when the amount is entered. Do not
indent manually.)
ACC 304 Week 6 Chapter 12 Homework
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ACC 304 Week 6 Chapter 12 Homework
1) Waters Corporation purchased Johnson Company 3 years ago and
at that time recorded goodwill of $400,000. The Johnson Division’s net
assets, including the good well, have a carrying amount of $800,000.
The fair value of the division is estimated to be $1,000,000.prepare
Water’s journal entry to record impairment of the goodwill.