6.A company purchased, for cash, specialized equipment on 1/1/2016 for $10,000.

Management estimated the useful life as 8 years with no salvage value.

According to the company's accounting policy, this type of PPE asset is depreciated using the straight line method.

On 12/31/17, new technology was introduced and management made the assessment that the specialized equipment that was purchased on 1/1/2016 would become obsolete more quickly than originally estimated.

At that time the accounting reporting team developed the following estimates regarding the specialized equipment:

--Expected future net cash flow is $6,300

--Fair value is $5,600

The company intends on continuing to use the specialized equipment, and estimates that as of 1/1/18, the remaining useful life is 4 years.

On 12/31/18, the accounting reporting team developed the following estimates regarding the specialized equipment:

--Expected future net cash flow is $4,900

--Fair value is $5,900

pre pare the following entries:

1/1/16Acquisition of the equipment

12/31/16Annual depreciation

12/31/17Annual depreciation

12/31/17Impairment, if any

12/31/18Annual depreciation

12/31/18Impairment, if any