Hello, please help! Please provide a detail solution for this question. Thank yo

Question

Hello, please help! Please provide a detail solution for this question. Thank you!

Exercise 11-18 (Part Level Submission) The management of Shamrock Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $1,026,000 with depreciation to date of $456,000 as of December 31, 2017, On December 31, 2017, management projected its future net cash flows from this equipment to be $342,000 and its fair value to be $262,200, The company intends to use this equipment in the future. Prepare the journal entry (if any) to record the impairment at December 31, 2017.(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 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Since the expected future net cash flow is less than the carrying amount,then an impairment has occurred.

Equipment cost 1026000 less: accumulated depreciation 456000 Carrying amount of equipment 570000

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