Exercise 5-21 (Algo) Asset Impairment [LO 5-2) in the current year, the building occupied by Sunshine City's Culture and Recreation Department suffered severe structural damage as a result of a hurricane. It had been 48 years since a hurricane had hit the Sunshine City area, although hurricanes in Sunshine City's geographic area are not uncommon The building had been purchased 10 years earlier at a cost of $2,100,000 and had accumulated depreciation of $525,000 as of the date of the hurricane Based on a restoration cost analysis, city engineers estimate the imporment loss at $240,000, however, the chy expects during the next fiscal year to receive insurance recoveries of $125,000 for the damage Required a Should the estimated impairment loss be reported as an extraordinary Item? As a spectal Item? A special item An extraordinary item Ordinary expense, disclosed in the notes to the financial statements Record the estimated impairment loss in the journal for govemmental activities at the government-wide level. If no entry is required for a transaction/event, select "No Journal Entry Requlred" in the first account field.) General Journal Debat Credit Transaction Governmental Retitie 1 Record the estimated pamentos Governmental Activities Buildings How should the insurance recovery be reported in the following fiscal year? O Program revenue Service revenue