Question 1 Presented below is information related to equipment owned by Sandhill

Question

Question 1 Presented below is information related to equipment owned by Sandhill Company at December 31, 2017 Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,630,000 1,070,000 7,490,000 5,136,000 Assume that Sandhill will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required, select "No entry" for the account titles and enter o 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 Attempts: 0 of s used SAVE FOR LATER SUBMIT ANSWER SUBMIT ANSWER

Explanation / Answer

Date Account titles and explanation Debit Credit Dec. 31 Loss on Impairment 3424000 Accumulated depritiation - Equipment 3424000 Cost 9630000 Accumulated depritiation 1070000 Cariing amount 8560000 Fair value 5136000 Loss on impaiment 3424000

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