Julia Corp Has Three Asset Whose Market Values Differ from Their

question 46

Essay

Julia Corp has three asset whose market values differ from their book values.
The market value of the first asset is expected to remain above the book value of Asset #1
for the life of the asset.
The market value of the second asset moves above and below the book value from year to
year.
The market value of the last asset is viewed as a permanent decline below the book value
of the asset.
Required:
A.Make the entry(ies) necessary to record the differences between the market and book values of the assets.
B.If the book values are adjusted to market values what impact will this have on the depreciation of the adjusted asset?

---

Definitions:

Atomic Orbital

A mathematical function that describes the wave-like behavior of an electron in an atom, indicating the probability of the electron’s presence at a particular location.

Photon

A particle of electromagnetic radiation; one quantum of radiant energy.

Light Energy

The form of energy visible to the human eye that is emitted by the sun and other sources, crucial for photosynthesis in plants.

Electromagnetic Spectrum

The entire span of electromagnetic radiation, extending from gamma rays to radio waves.