In a recent 10-K report, Speedy Delivery Service states it is the world's largest package dellvery company, a leader in the U.S. less than-truckload Industry, and the premier provider of global supply chain management solutions. The following note and data were reported: Note 1-Summary of Accounting Policies Property, plant and Equipment We review long-lived assets for impairment when circumstances Indicate the carrying amount of an asset may not be recoverable based on the undiscounted future cash flows of the asset. If the carrying amount of the asset is determined not to be recoverable, a write down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as appropriate. Dollars in Millions $ 41,999 Cost of property and equipment (beginning of year) Cost of property and equipment (end of year) Capital expenditures during the year Accumulated depreciation (beginning of year) Accumulated depreciation (end of year) Depreciation expense during the year Cost of property and equipment sold during the year Accumulated depreciation on property sold Cash received on property sold 44,140 3,141 21,990 23,171 2,003 1,000 822 149 Required: 1. Reconstruct the journal entry for the disposal of property and equipment during the year 2. Compute the amount of property and equipment that United Parcel wrote off as Impaired during the year, if any. (Hint: Set up T. accounts) Complete this question by entering your answers in the tabs below. Required Required 2 Reconstruct the journal entry for the disposal of property and equipment during the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (t. 10.000.000 should be entered as 10).) View transaction lit 8 Connect Homework Saved Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reconstruct the journal entry for the disposal of property and equipment during the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet Record the disposal of property and equipment during the year. Note: Enter debts before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Required 2 > based on the undiscounted future cash flows of the asset. If the carrying amount of the asset is determined not to be recoverable, a write down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as appropriate 072 Cost of property and equipment (beginning of year) Cost of property and equipment (end of year) Capital expenditures during the year Accumulated depreciation (beginning of year) Accumulated depreciation (end of year) Depreciation expense during the year Cost of property and equipment sold during the year Accumulated depreciation on property sold Cash received on property sold Dollars in Millions $ 41,999 44,140 3,141 21,990 23,171 2,603 1,000 822 149 Required: 1. Reconstruct the journal entry for the disposal of property and equipment during the year 2. Compute the amount of property and equipment that United Parcel wrote off as Impaired during the year, if any. (Hint: Set up T- accounts) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of property and equipment that United Parcel wrote off as Impaired during the year, if any, (Hint: Set up T-accounts.) (Enter your answer in millions.) Impairment loss million (Required 1
