in a recent 10 k report united parcel service states it 253018

In a recent 10-K report, United Parcel Service states it ?ois the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry, and a global leader in supply chain management.?? The following note and data were reported:

Note 1—Summary of Accounting Policies

Impairment of Long-Lived Assets

. . . we review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on the undiscounted future cash flows of the asset. . . .

Dollars in Millions

Cost of property and equipment (beginning of year) ………………. $33,611

Cost of property and equipment (end of year) ………………………. 35,098

Capital expenditures during the year ………………………………….. 2,636

Accumulated depreciation (beginning of year) ………………………. 15,948

Accumulated depreciation (end of year) ……………………………… 16,833

Depreciation expense during the year …………………………………. 1,814

Cost of property and equipment sold during the year ………………… 1,040

Accumulated depreciation on property sold ……………………………. 929

Cash received on property sold ………………………………………….. 147

Required:

1. Reconstruct the journal entry for the disposal of property and equipment during the year.

2. Compute the amount of property and equipment that United Parcel wrote off as impaired during the year.

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?