Purchase Solution

Asset Carrying Amount

Not what you're looking for?

Ask Custom Question

Spiro Corp uses the sum-f-the-years digits method to depreciate equipment purchased in January 1996 for 20,000. The estimated salvage value of the equipment is 2,000 and the estimated useful life is four years. What should Spiro report as the asset's carrying amount as of December 31, 1998?

a) 1800
b) 2000
c) 3800
d) 4500.

Purchase this Solution
Solution Summary

This solution calculates the asset's carrying amount for Spiro Corp.

Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

View More Free Quizzes
Related BrainMass Solutions

  • Determining Asset Impairment Loss

    If the carrying amount is less than that sum, the asset is not impaired; if the carrying amount exceeds the sum, the asset is impaired.

  • Write Down of Impaired Assets & IAS 36

    Impairment of asset means if the market price of the share is lesser than the carrying amount of the asset .Carrying amount of the asset means the value of the asset mentioned in the balance sheet.

  • Accounting issues related to asset impairment.

    An impairment loss is measured as the amount by which the asset's carrying amount exceeds the higher of the value in use and the net selling price of that asset.

  • Understanding the two-tier test for impairment of long term assets

    If the carrying amount is lower, then there is no impairment loss. If the carrying amount is higher, then proceed to step 2. Step 2: Compare the fair market value of the asset (what it could be sold for) to the carrying value.

  • Impairment of asset

    (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2006. Impairment is there if the expected future cash flows are less than the carrying amount.

  • Impairment of Copyright

    Cost 2,700,000 Carrying amount 2,400,000 Expected future net cash flows 2,100,000 Fair value $1,400,000 Assume Wamser will continue to use this asset

  • Present Value

    114150 Present Value - Maximum Annual Carrying Cost A firm with a cost of capital of 13.5% has a contract to sell an asset for $230,000 in five years. The asset costs $111,000 to produce today (at t = 0).

  • asset's purchase price

    Carry value is amount or nominal worth of the asset, as reported in the balance sheet for accounting purposes, such as value of machinery after depreciation.

  • Fundamental Accounting Principles

    The amount of the impairment loss recognized is the amount by which the carrying amount of the asset exceeds the fair value of the asset.

View More Related Solutions