In a recent 10-K report, Speedy Delivery Service states it is the worlds largest package delivery 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 1Summary 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 Cost of property and equipment (beginning of year) $ 41,643 Cost of property and equipment (end of year) 43,700 Capital expenditures during the year 3,037 Accumulated depreciation (beginning of year) 21,890 Accumulated depreciation (end of year) 23,067 Depreciation expense during the year 1,993 Cost of property and equipment sold during the year 980 Accumulated depreciation on property sold 816 Cash received on property sold 137 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.)

In a recent 10-K report, Speedy Delivery Service states it is the world's largest package delivery 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 1Summary 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. 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 $ 41,643 43,700 3,037 21,890 23,067 1,993 980 816 137 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.) 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 debits before credits. Transaction General Journal Debit Credit a 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