Accounting homework help

Posted on 2014-04-03 07:21:00 in Accounting by TYLER MILLER

Winger, Inc. is in the business of renting medical equipment for home health care. New government standards for lifts for disabled patients have rendered some equipment obsolete.

Winger owns 10 four-year-old machines, each with a cost of $6,000. They have been depreciated using the straight-line method over an estimated life of 10 years. Since some parts can be used, they still have a resale value of approximately $1,000 each. Explain what accounting measure is required, what the effects on the financial statements will be (including amounts), and why this measure is important to creditors of Winger.

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