Concord Corporation acquires a coal mine at a cost of $456,000. Intangible development costs total $114,000. After extraction has occurred, Concord must restore the property (estimated fair value of the obligation is $91,200), after which it can be sold for $182,400. Concord estimates that4,560tons of coal can be extracted.

If798tons are extracted the first year, prepare the journal entry to record depletion.(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.)

Account Titles and Explanation

Debit

Credit

Exercise 11-16 (Part Level Submission) Presented below is information related to equipment owned by Indigo Company at December 31, 2017.

Cost	$10,170,000
Accumulated depreciation to date	1,130,000
Expected future net cash flows	7,910,000
Fair value	5,424,000

Assume that Indigo will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of4years.

(a)

	Your answer is correct.

Prepare the journal entry (if any) to record the impairment of the asset 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
Dec. 31

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(b) Prepare the journal entry to record depreciation expense for 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.)

Account Titles and Explanation	Debit	Credit

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