Example EFG Co. has the following asset as of December 31, 2020 before any adjusting entries are recorded: Building (no residual value) Less: Accumulated Depreciation (straight-line, 2 years) 330,000 22,000 The management estimated that the building has a fair value of $268,000. The remaining useful life of the building is 28 years. Record the necessary journal entries related to the building. 1) Record the depreciation on the building for 2020: Original Cost 330,000 Depreciation Expense 11,000 Accum. Depr. 33,000 Accumulated Depreciation Carrying Value 297,000 11,000 Fair Value 268,000 2) Record the impairment loss on the building: Impairment Loss 29,000 Loss on Impairment Building 29,000 29,000