CSD Company uses special forming equipment

in its manufacturing business. The

equipment was purchased in January 2018 for

$6,000,000 and had an estimated

useful life of 10 years with no salvage value. At

December 31, 2020, new technology

was introduced that would accelerate the

obsolescence of CD's equipment. CSD's

controller estimates that expected future net

cash flows on the equipment will be

$4,000,000 and that the fair value of the

equipment is $3,300,000. As of December

31, 2020, CD intends to continue using the

equipment, but it is estimated that the

remaining useful life is 4 years. CSD uses the

straight-line depreciation method.

(a) Does this asset need to get impaired? If so,

why?

(b) Prepare the journal entry (if any) to record

the impairment at December 31, 2020.

(c) Prepare any journal entry (if any) for the

equipment at December 31, 2021.

(d) Assuming that CSD intends to use the

equipment, prepare any journal entries for

the equipment at Dec 31, 2021. The fair value

of the equipment at Dec 31, 2021, is

estimated to be $3,700,000. Prepare any

journal entry (if any) for the equipment at

December 31. 2021.