3 Questions
Which of the following is the correct formula to calculate annual depreciation using the straight-line method?
(Cost - Residual Value) / Estimated Useful Life
What is the carrying value of the machinery on June 30, 2021?
1,350,000
What is the journal entry to record the impairment loss on June 30, 2021?
Debit Loss on Impairment 1,540,000, Credit Machinery 1,540,000
"Test Your Accounting Knowledge: Depreciation and Recoverability of Machinery" - see how well you understand the accounting concepts of depreciation and recoverability through this quiz! Based on a scenario of ABC Company's acquisition of machinery, test your knowledge of straight line method, useful life, residual value, and the impact of changes in demand on recoverability. Get ready to sharpen your accounting skills and boost your confidence in understanding these important concepts!
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