Net Book Value Journal Entry

With accumulated depreciation of 10 000 and net book value of 160 000 it means the revalued amount in asset s account is 170 000.

Net book value journal entry. Net book value 540 000 in this example the accumulated depreciation was calculated by determining the depreciation amount per month and multiplying it by the number of months the asset was in use as of 12 31 2016. 5 200 000 goodwill on the books of the reporting unit 1 000 000 ignoring goodwill the fair market value of the reporting units net assets exceeds cost by 200 000. Journal entry to record the revaluation loss will be.

The software license was valid for four years. It is because both the cash proceeds and carrying amount are zero. From the tables at 10 the factors for year 2 and 3 are 0 8264 and 0 7513 and the net present value is calculated as npv 5 000 3 000 x 0 8264 7 000 x 0 7513 npv 5 000 2 479 20 5 259 10 npv 2 738 30.

Disposal of an asset with zero book value and salvage value. In year 5 quarter 4 at the end of the asset s life you retire the asset with no proceeds of sale or cost of removal. The calculations can be carried out using our present value of a lump sum tables can be used as follows.

Because this amount is less than the net book value of the old truck a loss is recorded for the difference. Net book value is the amount at which an organization records an asset in its accounting records. Profit on disposal proceeds net book value profit on disposal 4 500 3 000 1 500 the fixed assets disposal journal entry would be as follow.

Net book value is calculated as the original cost of an asset minus any accumulated depreciation accumulated depletion accumulated amortization and accumulated impairment. 5 000 per month 600 000 120 months multiplied by the 12 months the asset was in use during 2016 5 000 12 months. The fair value of the old truck is 350 000 which is also deemed to be the fair value of the boat.

Company a purchased a software for 100 000 on 1 january 2009. At any point in time we can determine the remaining value of the table its net book value by netting fixed assets and accumulated depreciation. If you believe there is an impairment record that impairment in a journal entry.