E8-15 (Algo) Inferring Asset Impairment and Recording Disposal of an Asset L08-4, 8-5 In a recent 10-K report, Speedy Delivery Service states it is the world's largest package delivery company, a leader in the U.S. less- than-truckload industry, and the premier provider of global supply chain management solutions. The following note and data were reported: Note 1- Summary of Accounting Policies Property, Plant and Equipment We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on the undiscounted future cash flows of the asset. If the carrying amount of the asset is determined not to be recoverable, a write down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as appropriate Dollars in Millions Cost of property and equipment (beginning of year) $40,219 Cost of property and equipment (end of year) 41,940 Capital expenditures during the year 2,621 Accumulated depreciation (beginning of year) 21,490 Accumulated depreciation (end of year) 22,651 Depreciation expense during the year 1,953 Cost of property and equipment sold during the year 900 Accumulated depreciation on property sold Cash received on property sold 89 792 Required: 1. Reconstruct the journal entry for the disposal of property and equipment during the year. 2. Compute the amount of property and equipment that United Parcel wrote off as impaired during the year, if any. (Hint: Set up T- accounts.) Help Save & Exit Submit Required: 1. Reconstruct the journal entry for the disposal of property and equipment during the year. 2. Compute the amount of property and equipment that United Parcel wrote off as impaired during the year, if any. (Hint: Set up T- accounts) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reconstruct the journal entry for the disposal of property and equipment during the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (l., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet