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Lawson Pet Shop Limited Bought New Grooming Equipment on January

Question 38

Multiple Choice

Lawson Pet Shop Limited bought new grooming equipment on January 1, 2013 for $13,000. The useful life is estimated to be 3 years with a residual value of $1,000. The company uses straight-line depreciation. On January 1, 2014, Pierre determined that the value of the equipment is impaired, as its recoverable amount is expected to be $4,800. The journal entry to record the impairment would involve debits and credits to the following accounts:


A) Lawson Pet Shop Limited bought new grooming equipment on January 1, 2013 for $13,000. The useful life is estimated to be 3 years with a residual value of $1,000. The company uses straight-line depreciation. On January 1, 2014, Pierre determined that the value of the equipment is impaired, as its recoverable amount is expected to be $4,800. The journal entry to record the impairment would involve debits and credits to the following accounts: A) B) C) D)
B) Lawson Pet Shop Limited bought new grooming equipment on January 1, 2013 for $13,000. The useful life is estimated to be 3 years with a residual value of $1,000. The company uses straight-line depreciation. On January 1, 2014, Pierre determined that the value of the equipment is impaired, as its recoverable amount is expected to be $4,800. The journal entry to record the impairment would involve debits and credits to the following accounts: A) B) C) D)
C) Lawson Pet Shop Limited bought new grooming equipment on January 1, 2013 for $13,000. The useful life is estimated to be 3 years with a residual value of $1,000. The company uses straight-line depreciation. On January 1, 2014, Pierre determined that the value of the equipment is impaired, as its recoverable amount is expected to be $4,800. The journal entry to record the impairment would involve debits and credits to the following accounts: A) B) C) D)
D) Lawson Pet Shop Limited bought new grooming equipment on January 1, 2013 for $13,000. The useful life is estimated to be 3 years with a residual value of $1,000. The company uses straight-line depreciation. On January 1, 2014, Pierre determined that the value of the equipment is impaired, as its recoverable amount is expected to be $4,800. The journal entry to record the impairment would involve debits and credits to the following accounts: A) B) C) D)

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