8,540,000 Fair value 5,856,0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Presented below is information related to equipment owned by Blue Company at December 31, 2020.
Cost | $10,980,000 | |
1,220,000 | ||
Expected future net |
8,540,000 | |
Fair value | 5,856,000 |
Assume that Blue will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.

Transcribed Image Text:Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select
"No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
Loss on Impairment
Accumulated Depreciation-Equipment
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