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) Property and equipment, gross Accumulated depreciation and amortization Property and equipment, net Current Year Prior Year $1,498 $1,600 (875) (916) $623 $684 During the current year ended December 31, we recognized $50 million of impairment losses related to property and equipment, including $7 million for finance lease ROU assets, which reduced the gross carrying value of property and equipment by $214, including finance lease ROY assets by $76 million, and the accumulated depreciation and amortization by $164 million, including finance lease ROU assets by $68 million. Note 7 also revealed that depreciation and amortization expense on property and equipment totaled $103 million during the current year. The statement of cash flows reported that expenditures for property and equipment totaled $83 million during the current year and that there were neither proceeds nor gain or loss on the sale of property and equipment during the year. 1. Using the information provided, prepare a journal entry and record in the FSET: a. the acquisition of new property and equipment during the year; b. the depreciation and amortization expense for the year; c. the impairment of the company's property and equipment during the year. Account a. To record acquisition of property and equipment b. To record depreciation and amortization expense c. To record impairment of the company's property and equipment Debit Credit 0 0 0 0 0 0 0 0 0 0 O O 0 0 0 0 ($ millions) Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets Contra Contributed Earned Net Assets Liabilities + Capital Capital Revenues Expenses Income a. Acquisition of PPE 0 0 0 0 0 0 0 0 b. Depreciation 0 c. Impairment of PPE 0 0 00 0 0 0 0 Oo 0 0 0 00 0 0 0 0