7: Property and Equipment ($ millions) Current Year Prior Year Property and equipment, gross $1,498 $1,600 Accumulated depreciation and amortization (875) (916) Property and equipment, net $623 $684 During the current year ended December 31, we recognized $50 million of impairment losses related to property and equipment, including $7 million for finance lease ROU assets, which reduced the gross carrying value of property and equipment by $214, including finance lease ROY assets by $76 million, and the accumulated depreciation and amortization by $164 million, including finance lease ROU assets by $68 million. Note 7 also revealed that depreciation and amortization expense on property and equipment totaled $103 million during the current year. The statement of cash flows reported that expenditures for property and equipment totaled $83 million during the current year and that there were neither proceeds nor gain or loss on the sale of property and equipment during the year. 1. Using the information provided, prepare a journal entry and record in the FSET: a. the acquisition of new property and equipment during the year; b. the depreciation and amortization expense for the year; c. the impairment of the company's property and equipment during the year. Account a. To record acquisition of property and equipment b. To record depreciation and amortization expense c. To record impairment of the company's property and equipment ($ millions) Debit 000 OO 0 0 0 0 Credit 0 0 0 0 0 00 Balance Sheet Transaction Cash Asset Noncash Contra + Assets Assets = Liabilities Contributed Earned Revenues + Capital + Capital a. Acquisition of PPE 0 0 0 0 0 b. Depreciation 0 0 0 0 0 c. Impairment of PPE 0 0 0 0 0 000 000 Income Statement Expenses 0 0 0 Net = Income 000