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university of california Operations And Supply Chain Management Assignment Help - accounting question!

Question - Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2011 for $10,100,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2012, new technology was introduced that would accelerate the obsolescence of Roland's equipment. Roland's controller estimates that expected future net cash flows on the equipment will be $6,300,000 and that the fair value of the equipment is $5,600,000. Roland intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Roland uses straight-line depreciation. (a) Prepare the journal entry (if any) to record the impairment at December 31, 2012. (b) Prepare the journal entry fo ...Read More

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