Exercise 2 The composition of property, plant and equipment: Below is information on the property and equipment of Amazon.com, Inc. for the year ended December 31, 2017: Amount (in millions) Cost of property and equipment (12/31/2016) $22,730 Accumulated depreciation (12/31/2016) 19,967 Cost of property and equipment (12/31/2017) 30,050 Accumulated depreciation (12/31/2017) 21,838 Depreciation expense in 2017 2,002 Capital expenditures in 2017 9,372 Cost of property and equipment sold in 2017 139 Accumulated depreciation of property and equipment sold in 2017 131 Cash received on property sold in 2017 17 * Some numbers have been changed for the purpose of this exercise. Required: (a) Record the journal entry for the disposal of property and equipment during 2017. (b) Compute the amount of property and equipment that Amazon.com wrote-off in 2017 due to impairment. Remember that write-offs only affect the cost of property and equipment. Useful formulas for this question and in general): Composition of end-of-period gross PP&E balance: + + 0) Beginning-of-period gross PP&E (cost) PP&E purchases (Capex) PP&E improvements (if not given assume Disposals Write-offs due to impairment End-of-period gross PP&E (cost) Composition of end-of-period accumulated depreciation balance: + Beginning-of-period accumulated depreciation Current period depreciation Accumulated depreciation of disposed assets End-of-period accumulated depreciation