Sandhill Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a December 31 year end. It purchased equipment on January 1, 2020, for $195,700. The equipment had an estimated useful life of five years and a residual value of $21,640. On December 31, 2021, the company tests for impairment and determines that the equipment's fair value is S108,400. Calculate the amount of the impairment loss, if any.
Sandhill Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a December 31 year end. It purchased equipment on January 1, 2020, for $195,700. The equipment had an estimated useful life of five years and a residual value of $21,640. On December 31, 2021, the company tests for impairment and determines that the equipment's fair value is S108,400. Calculate the amount of the impairment loss, if any.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Sandhill Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a
December 31 year end. It purchased equipment on January 1, 2020, for $195,700. The equipment had an
estimated useful life of five years and a residual value of $21,640. On December 31, 2021, the company
tests for impairment and determines that the equipment's fair value is S108,400.
Calculate the amount of the impairment loss, if any.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F382372b0-16ac-4607-9b66-96e6ab8f64d4%2F152ee165-c5c7-4c3d-9840-e177131493b6%2F0fkqfp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sandhill Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a
December 31 year end. It purchased equipment on January 1, 2020, for $195,700. The equipment had an
estimated useful life of five years and a residual value of $21,640. On December 31, 2021, the company
tests for impairment and determines that the equipment's fair value is S108,400.
Calculate the amount of the impairment loss, if any.
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