1)

2)

The information that follows relates to equipment owned by Bonita Limited at December 31,2023 : At December 31,2023, Bonita discontinues use of the equipment and intends to dispase of it in the coming year by se ling it to a competiter. It is expected that the costs of dispasai will total $52,000. (a1a3) Your arswer is partially carrect. Assume that Bonita is a private campany that follows ASPE. (Credit occount titles are automatically indented when the amount is entered. Do not indent manualif. If no entry is required, select "No Entry" for the account tides and enter O for the amounts List all debit entries before credit entries:) 1. Prepare the journal entry at December 31,2023 , to record asset impairment, if any. 2. Prepare the journal entry to record depreciation expense far 2024. 3. Assume that the asset was not sold by December 31, 2024. The equipment's fair value (and recoverable amount) an this date is $6.76 million. Prepare the journal entry, if any, to record the increase in fair value. It is expected that the casts of disposal will total $52,000 Assume that Bonita will continue to use this asset in the future. As at December 31,2023 , the equigment has a remaining useful life of four years. Bonita uses the straight-line method of depreciation. (a) Assume that Bonita is a private campary that follows ASPE. 1. Prepare the journal entry at December 31,2023 , to record asset impairment, if any 2. Prepare the joumal entry to record depreciation expense for 2024. 3. The equipment's fair value at December 31.2024 , is $4.81 milison. Prepare the journal entry, if any. to recond the increase in fair value. Credit account titles are dutomutically indented when the amount is entered. Do not indent manualiy. 1f no entry is requinsad, select "Wo Entry" for the occount titles and enter O for the amounts. List aW debit entries before credit entries.)