Current Attempt in Progress

The management of Bonita Inc. was discussing whether certain equipment should be written off as a charge to current operations

because of obsolescence. This equipment has a cost of $$981,000$ with depreciation to date of $$436,000$ as of December $31,2025.$ On

December $31,2025,$ management projected its future net cash flows from this equipment to be $$327,000$ and its fair value to be

$$250,700.$ The company intends to use this equipment in the future.

$($a$)$

Prepare the journal entry $($if any$)$ to record the impairment at December $31,2025.($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. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31$

eTextbook and Media

List of Accounts

Attempts: $0$ of $5$ used

$($c$).$

At December $31,2026,$ the equipment's fair value increased to $$280,700.$ Prepare the journal entry $($if any$)$ 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. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31$