In a recent 10-K report, United Parcel 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. 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) $ 54,488 Cost of property and equipment (end of year) 59,727 Capital expenditures during the year 6,380 Accumulated depreciation (beginning of year) 27,912 Accumulated depreciation (end of year) 29,245 Depreciation expense during the year 2,360 Cost of property and equipment sold during the year 1,141 Accumulated depreciation on property sold 1,027 Cash received on property sold 65

Required: Reconstruct the journal entry for the disposal of property and equipment during the year. 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.

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Reconstruct the journal entry for the disposal of property and equipment during the year.

Note: 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).

Journal entry worksheet

Record the disposal of property and equipment during the year.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
a

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