Identifying and Recording Impairment Loss on Fixed Asset Supreme Inc. has equipment with an original cost...

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Identifying and Recording Impairment Loss on Fixed Asset Supreme Inc. has equipment with an original cost of $800,000, and accumulated depreciation of $300,000. Supreme is aware of a general market decline in the value of this equipment due to upgrades that are now available. Supreme estimates the total remaining future net cash inflows from operating the equipment to be $400,000. The fair value of the equipment is estimated to be $300,000 based on conditions in the market. Prepare the entry, if any, that Supreme should make to record the decline in value. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Loss on Impairment Please answer all parts of the question. Dr. Cr. 0 0 0 0 Identifying and Recording Impairment Loss on Fixed Asset Supreme Inc. has equipment with an original cost of $800,000, and accumulated depreciation of $300,000. Supreme is aware of a general market decline in the value of this equipment due to upgrades that are now available. Supreme estimates the total remaining future net cash inflows from operating the equipment to be $400,000. The fair value of the equipment is estimated to be $300,000 based on conditions in the market. Prepare the entry, if any, that Supreme should make to record the decline in value. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Loss on Impairment Please answer all parts of the question. Dr. Cr. 0 0 0 0

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Supreme Inc should record the impairment loss on the f... View the full answer