Accounting

(a) Peppers Corporation owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $180,000. The machinery has a fair value of $140,000. Record Peppers journal entry to recognize any loss that needs to be recognized for impairment.

(b) Dillman Corporation owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $195,000. The machinery has a fair value of $150,000. Record Dillmans journal entry to recognize any loss that needs to be recognized for impairment.

(c) Assume the company had used double-declining balance depreciation during 2017 and 2018. At the beginning of 2019, the company determined that due to a revolutionary advance in snow-making technology the equipment would be useful to the company for only two more years, 2019 and 2020. A revised salvage value is estimated at $120,000. Record the adjusting entry for depreciation for 2019.