Graham Top Menswear, Ltd, reported net plant and equipment of $1,618,000. these assets cost $2,522,000 with accumulated depreciation taken to date of $904,000. Base don recently assessed negative evidene, Graham's top management conclude that its plant assets might be impaired. graham Top estimate totals exceed future cash flows from use of the assets as only $1,315,000 and appraises the fair value of the asset at $1,010,000. Are the company assets impaired? If there is an impairment loss, prepare the journal entry necessary to record the impairment.

Conduct the impairment test for plant and equipment at the end of the year to determine whether Graham Top Menswear assets are impaired.

Step 1 Plant and Equipment

? ?

? ?

impairment indicated ?

Now, complete step 2 of the impairment test for plant and equipment. Select whether Step 2 of the test is required on the first line. (If the test is not required, leave all remaining cells in that column black. However, if the test is required, but no impairment loss exists, then leave only the impairment loss input cell blank in that column.)

Step 2 Plant and Equipment

Step 2 required ?

? ?

Less: ? ?

Impairment Loss ?

Next, if there is an impairment loss, prepare the journal entry necessary to record the impairment. (Record debits first, then credits. If noentry is required, please put, no entry required.)

Account Date of Impairment

? ? ?

? ? ?

? ? ?

? ? ?