Carla Vista Company uses special plastic wrapping equipment in its shipping business The equipment was purchased in January 2016 for $4,560,000 and had an estimated useful life of 8 years with no salvage value At December 31, 2017, new technology was introduced that would accelerate the obsolescence of Carla Vistas equipment Carla Vistas controller estimates that expected future net cash flows on the equipment will be $3,192,000 and that the fair value of the equipment is $2,736,000 Carla Vista intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years Carla Vista uses straight line depreciation Prepare the journal entry (if any) to record the impairment at December 31, 2017 (If no entry is required, select No entry for the account titles and enter 0 for the amounts Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit December 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount eTextbook and Media Prepare the journal entry for the equipment at December 31, 2018 The fair value of the equipment at December 31, 2018, is estimated to be $3,310,000 (If no entry is required, select No entry for the account titles and enter 0 for the amounts Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit December 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount eTextbook and Media Prepare the journal entry (if any) to record the impairment at December 31, 2017 and for the equipment at December 31, 2018, assuming that Carla Vista intends to dispose of the equipment and that it has not been disposed of as of December 31, 2018 (If no entry is required, select No entry for the account titles and enter 0 for the amounts Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit 12 31 17 enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount 12 31 18 enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount Carla Vista Company uses special plastic wrapping equipment in its shipping business The equipment was purchased in January 2016 for $4,560,000 and had an estimated useful life of 8 years with no salvage value At December 31, 2017, new technology was introduced that would accelerate the obsolescence of Carla Vista's equipment Carla Vista's controller estimates that expected future net cash flows on the equipment will be $3,192,000 and that the fair value of the equipment is $2,736,000 Carla Vista intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years Carla Vista uses straight line depreciation Prepare the journal entry (if any) to record the impairment at December 31, 2017 (If no entry is required, select No entry for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit December 31 e Textbook and Media Prepare the journal entry for the equipment at December 31, 2018 The fair value of the equipment at December 31, 2018, is estimated to be $3,310,000 (If no entry is required, select No entry for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit December 31 e Textbook and Media Prepare the journal entry (if any) to record the impairment at December 31, 2017 and for the equipment at December 31, 2018, assuming that Carla Vista intends to dispose of the equipment and that it has not been disposed of as of December 31, 2018 (If no entry is required, select No entry for the account titles and enter Ofor the amounts Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit 12 31 17 12 31 18

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Carla Vista Company uses special plastic wrapping equipment in its shipping business. The equipment was purchased in January 2016 for $4,560,000 and had an estimated

Prepare the journal entry (if any) to record the impairment at December 31, 2017. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
December 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

Prepare the journal entry for the equipment at December 31, 2018. The fair value of the equipment at December 31, 2018, is estimated to be $3,310,000. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
December 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

Prepare the journal entry (if any) to record the impairment at December 31, 2017 and for the equipment at December 31, 2018, assuming that Carla Vista intends to dispose of the equipment and that it has not been disposed of as of December 31, 2018. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
12/31/17	enter an account title for the journal entry on December 31, 2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2017	enter a debit amount	enter a credit amount
12/31/18	enter an account title for the journal entry on December 31, 2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2018	enter a debit amount	enter a credit amount

image text in transcribed

Carla Vista Company uses special plastic wrapping equipment in its shipping business. The equipment was purchased in January 2016 for $4,560,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2017, new technology was introduced that would accelerate the obsolescence of Carla Vista's equipment. Carla Vista's controller estimates that expected future net cash flows on the equipment will be $3,192,000 and that the fair value of the equipment is $2,736,000. Carla Vista intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Carla Vista uses straight-line depreciation. Prepare the journal entry (if any) to record the impairment at December 31, 2017. (If no entry is required, select "No entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31 e Textbook and Media Prepare the journal entry for the equipment at December 31, 2018. The fair value of the equipment at December 31, 2018, is estimated to be $3,310,000. (If no entry is required, select "No entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31 e Textbook and Media Prepare the journal entry (if any) to record the impairment at December 31, 2017 and for the equipment at December 31, 2018, assuming that Carla Vista intends to dispose of the equipment and that it has not been disposed of as of December 31, 2018. (If no entry is required, select "No entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/17 12/31/18