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Cost $10,980,000 Accumulated depreciation to date 1,220,000 Expected future net cash flows 8,540,000 Fair value 5,856,000 Assume that Blue will continue to use this asset

Cost $10,980,000
Accumulated depreciation to date 1,220,000
Expected future net cash flows 8,540,000
Fair value 5,856,000

Assume that Blue will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.

Partially correct answer iconYour answer is partially correct.

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (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

enter an account title to record the transaction on December 31, 2017

enter a debit amount

enter a credit amount

enter an account title to record the transaction on December 31, 2017

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

Partially correct answer iconYour answer is partially correct.

Prepare the journal entry to record depreciation expense for 2021. (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

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

Partially correct answer iconYour answer is partially correct.

The fair value of the equipment at December 31, 2021, is $6,222,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (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

enter an account title to record the transaction on December 31, 2018

enter a debit amount

enter a credit amount

enter an account title to record the transaction on December 31, 2018

enter a debit amount

enter a credit amount

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