+ Ch 11: Homework Question 5 of 7

Ch II: Homework Question 5 Of 7 Current Attempt in Progress The information that tallows relates to equipment owned by Headlands Limited at December 31, 2020: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted} Expected future net cash flows (discounted. value in use) Fair value Costs to sell (costs of disposal) 860.000 5,461.000 43.000 Assume that Headlands will continue to use this asset in the future. AS at December 31, 2020, the equipment has a remaining usefu life of four years. Headlands uses the straight-line method of depreciation. Assume that Headlands is a private Company that follows ASPE Prepare the journal entry at December 31.2020. to record asset impairment, if any. Prepare the journal entry to record depreciation expense for 2021. The equipment's fair value at December 31, 2021 is million Prepare the journal entry, if any. to record the increase in fair value. (Credit account titres autornaticany when the amount is entered not indent manually. If entry is Entry " for the account titles am-i enter O the arnmnt5.)