Alexa Corporation has a calendar year end and owns equipment that was purchased for $225,000 on March 1, 2020. On December 31, 2021 after the year-end adjusting entries, the carrying amount of the asset is $155,000. Due to damage, management determines the recoverable value to be $125,000. Alexa would make the following entry related to this asset:

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The Answer of Alexa Corporation has a calendar year end and owns equipment that was purchased for $225,000 on March 1, 2020. On December 31, 2021 after the year-end adjusting entries, the carrying amount of the asset is $155,000. Due to damage, management determines the recoverable value to be $125,000. Alexa would make the following entry related to this asset:

Alexa Corporation Has a Calendar Year End and Owns Equipment