Exercise 11-18 (Part Level Submission) The management of Shamrock Inc, was discu

Question

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. ? (a) Your answer is correct. Prepare the journal entry (if any) to record the impairment at December 31, 2017. (It 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 307800 Accumulated Depreciation-Equipment 307800 Click if you would like to Show Work for this question Open Show Work LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER

Explanation / Answer

Accumulated depreciation - equipment debit 34200

Loss on impairement Credit 34200

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