Analyzing the Financial Statement Impacts of Disposals and Impairments The following three equipment items were purchased at different points in time but were all sold during the current year. Assume all equipment items had a zero salvage value. Equipment item Original Cost Estimated Useful Life Life at Date of Sale Cash Sale Price 5 years Byears 101 220 380 $110.000 $160,000 $250,000 10 years 36 months 84 months 48 months $44,000 $25,000 $136,000 Using the financial statement effects template, show how the sale of each equipment item affects the balance sheet and income statement. Assume that the company applies the straight-line depreciation method Note for each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction Note Indicate a decrease in an account category by including a negative sign with the amount Balance Sheet Cash Asset Nancash Assets Transaction (1) Sold Equipment 101 a) Sold Equipment #220 Sold Equipment 380 Contra Assets Liabilities 0 0 Contrib Capital Earned Capital N/A 0 0 0 N/A 0 NA Income Statement Revenues 0 = b Instead, assume that item #380 was not sold. However, the company examined the equipment for impairment and estimates $146,000 in future cash inflows related to the use of the equipment. The fair value of the equipment is determined to be $136.000. Use the financial statement effects template to show the impact of an impairment of an impairment is required to be recorded) Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction Note indicate a decrease in an account category by including a negative sign with the amount 0 a Using the financial statement effects template, show how the sale of each equipment item affects the balance sheet and income statement. Assume that the company applies the straight-line depreciation method. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction Note Indicate a decrease in an account category by including a negative sign with the amount I Noncash Assets Contra Assets 0 Contrib Liabilities Capital + Earned Capital 0 D N/A 0 0 N/A 0 NA # 0 0 Income Statement Net Revenues Expenses Income 0 0 0 b. instead, assume that item #380 was not sold. However, the company examined the equipment for impairment and estimates $146,000 in future cash inflows related to the use of the equipment. The fair value of the equipment is determined to be $136,000. Use the financial statement effects template to show the impact of an impairment (if an impairment is required to be recorded). Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction Note: indicate a decrease in an account category by including a negative sign with the amount ance Sheet Cash Asset Nencash Centra Assets Assets Please answer all parts of the question Income Statement Centr Liabilities Capital Earned Capital Net Expenses Income 0 N/A