Bramble Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $7.80 million and had an estimated useful life of 8 years with no residual value. In early April 2020, a part oosting $680,000 and designed to increase the machinery's efficiency was added. The machine's estimated useful life did not change with this addition, By December 31, 2020, new technology had been introduced that would speed up the obsolescence of Bramble's equipment. Bramble's controller estimates that expected undiscounted future net cash flows on the equipment would be $4.91 million, and that expected discounted future net cash flows on the equipment would be $4.52 milion. Fair value of the equipment at December 31, 2020, was estimated to be $4.37 milion. Bramble intends to continue using the equipment, but estimates that its remaining useful life is now four years, Bramble uses straight line depredation. Assume that Bramble is a private company that follows ASPE Prepare the journal entry to record asset impairment at December 31, 2020, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is r uind select "No Entry" for the account titles and enter for the amounts, Round answers to o decimal places, 0.5,275.) Debit Credit Date Account Titles and Explanation December 31, 2020 Fair value of the equipment at December 31, 2021, estimated to be 54.60 million. Prepare any journal entries for the equipment at December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do norint manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Credit Date Account Titles and Explanation December 31, 2021 Activate Windows Fair value of the equipment at December 31, 2021, is estimated to be $4.60 million. Prepare any journal entries for the equipment at December 31, 2021. (Credit account automatically indented when the amount is entered. Do not indent manually. If no entry is required select "No Entry for the account titles and enter o for amounts.) Debit Credit Date Account Titles and Explanation December 31, 2021 Repeat part (b), assuming that on December 31, 2021, Bramble's management decides to dispose of the equipment. As at December 31, 2021, the asset is still in use and not for sale in its current state. In February 2022, Bramble's management will meet to outline an active program to find a buyer. (Credit account titles are automatically inden when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation December 31, 2021 Activate Windows Repeat part (b), assuming that the equipment is designated as held for sale as of January 1, 2021, and that the equipment was not in use in 2021 but was still held by Bramble Repeat part (b), assuming that the equipment is designated as "held for sale as of January 1, 2021, and that the equipment was not in use in 2021 but was still held by Bramble on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Credit Date Account Titles and Explanation December 31, 2021 Repeat parts (a) and (b), assuming instead that Bramble is a public company that prepares financial statements in accordance with IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal places, e.o. 5,275. Record journal entries in the order presented in the problem.) Account Titles and Explanation Credit (To record depreciation on Equipment Repeat parts (a) and (b), assuming instead that Bramble is a public company that prepares financial statements in accordance with IFRS. (Credit account titles are automati Indented when the amount is entered. Do not indent manually. If no entry is required t o try for the account ties and enter for the amounts. Roe answers to o decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record depreciation on Equipment) (To record the recovery of lous from impairment) Problem 11-14 Riverbed Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10.20 million and had an estimated useful life of 8 years with no residual value. In early April 2020, a part costing $890,000 and designed to increase the machinery's efficiency was added. The machine's estimated useful life did not change with this addition. By December 31, 2020, new technology had been introduced that would speed up the obsolescence of Rulverbed's equipment. Riverbed's controller estimates that expected undiscounted future net cash flows on the equipment would be $6.43 million, and that expected discounted future net cash flows on the equipment would be $5.92 million. Fair value of the equipment at December 31, 2020, was estimated to be $5.71 million. Riverbed intends to continue using the equipment, but estimates that its remaining useful life is now four years. Riverbed uses straight-line depreciation. Assume that Riverbed is a private company that follows ASPE. Prepare the journal entry to record asset impairment at December 31, 2020, If any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal places, 0.5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 Loss on Impairment Accumulated Impairment ! Fair value of the equipment at December 31, 2021, is estimated to be $6.02 million. Prepare any journal entries for the equipment at December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts Date Account Titles and Explanation Debit Credit LEGOS December 31, 2021 PRINTER VERSION BACK NEXT Fair value of the equipment at December 31, 2021, is estimated to be $6.02 million. Prepare any journal entries for the equipment at December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation December 31, 2021 Debit Credit Repeat part (b), assuming that on December 31, 2021. Riverbed's management decides to dispose of the equipment. As at December 31, 2021, the asset is still in use and not ready for sale in its current state. In February 2022. Riverbeds management will meet to outline an active program to find a buyer. (Credit accountles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Date Account Titles and Explanation December 31, 2021 Debit Credit PRINTER VERSION BACK NEXT Repeat part (b), assuming that the equipment is designated as "held for sale as of January 1, 2021, and that the equipment was not in use in 2021 but was still held by Riverbed on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Account Titles and Explanation December 31, 2021 Debit Credit Repeat parts (a) and (b), assuming instead that Riverbed is a public company that prepares financial statements in accordance with IFRS. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter for the amounts. Nound answers to decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit To record depreciation on Equipment Repeat parts (a) and (b), assuming instead that Riverbed is a public company that prepares financial statements in accordance with IFRS. (Credit account bites are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal places, . 5,275. Record journal entries in the order presented in the problem.) Account Titles and Explanation Credit To record depreciation on Equipment) (To record the recovery of loss from impairment)