Concord Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $12,000,000 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 Concords equipment. Concords controller estimates that expected future net cash flows on the equipment will be $7,560,000 and that the fair value of the equipment is $6,720,000. Concord intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Concord uses straight-line depreciation.

12/31/18 Concord Company uses speoal strapping equipment in its packaging business. The equipment was purchased in January 2016 for $12,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2017, new technolcgy was introduced that would accclerate the obsalescence of Concord's equipment. Concord's controller estimates that expected future net rash flows on the equipment will be $7,560,000 and that the fair value of the equipment is $6,720,000. Concord intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years, Concord uses straight-line depreciation Prepare the joumal 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 Date Account Titles and Explanation Debit Crexdit Dec. 31 Prepare the journal entry for the equipment at December 31, 2018. The fair value of the equipment at December 31, 2018, is est mated to be $7,080,000. (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 Dec. 31 Prepare the journal entry (if any) to record the impairment at December 31, 2017 and for the equipment at December 31, 201B, assuming that Concord intends to dispose af the equipient and that it has not been disposed of as of December 31, 2018. (I no entry is required, select "No entry" for the account titles and enter O 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