1) Gearworks Inc. has machinery that it is checking for impairment. The machinery has an original cost of $78,400 and accumulated depreciation of $33,900. Assume the machinery's fair value is $39,800 and it has expected future net cash flows of $32,000.Record any December 31 adjusting entry needed for impairment.

2) When extracting a natural resource, the end-of-period adjusting entry could have which account as thedebit?

Question options:

A. Depletion expense

B. Amortization expense

Accumulated depletionC.

D. Inventory

3) Lovonov Pharmacies purchased a building for $680,000 on January 1, 20X3, assuming a 35-year useful life and a $49,000 salvage value. On January 1, 20X5, the company changes their estimates to a $38,000 salvage value and 28 years of useful life left. What should be theamount of depreciation taken in 20X5?