Computing and Recording Proceeds from the Sale of PPE The following information was provided in the current year 10-K of International Lodgings, Inc. Note 7: Property and Equipment ($ millions) Current Year Prior Year Property and equipment, gross $1,248 $1,334 Accumulated depreciation and amortization (729) (764) Property and equipment, net $519 $570 During the current year ended December 31, we recognized $42 million of impairment losses related to property and equipment, including $6 million for finance lease ROU assets, which reduced the gross carrying value of property and equipment by $179, including finance lease ROY assets by $63 million, and the accumulated depreciation and amortization by $137 million, including finance lease ROU assets by $57 million. Note 7 also revealed that depreciation and amortization expense on property and equipment totaled $86 million during the current year. The statement of cash flows reported that expenditures for property and equipment totaled $69 million during the current year and that there were neither proceeds nor gain or loss on the sale of property and equipment during the year. 1. Using the information provided, prepare a journal entry and record in the FSET: a. the acquisition of new property and equipment during the year; b. the depreciation and amortization expense for the year; c. the impairment of the company's property and equipment during the year. Account a. To record acquisition of property and equipment b. To record depreciation and amortization expense c. To record impairment of the company's property and equipment Debit Credit Liabilities Contributed + Capital Earned Capital Revenues ($ millions) Balance Sheet Cash Transaction Asset + Noncash Assets Contra Assets a. Acquisition of PPE b. Depreciation c. Impairment of PPE Income Statement Net Expenses = Income