In the current year, the building occupied by Sunshine City's Culture and Recreation Department suffered severe structural damage as a result of a hurricane. It had been 48 years since a hurricane had hit the Sunshine City area, although hurricanes in Sunshine City's geographic area are not uncommon. The building had been purchased 10 years earlier at a cost of $2,900,000 and had accumulated depreciation of $725,000 as of the date of the hurricane. Based on a restoration cost analysis, city engineers estimate the impairment loss at $320,000; however, the city expects during the next fiscal year to receive insurance recoveries of $165,000 for the damage. Required a. Should the estimated impairment loss be reported as an extraordinary item? As a special item? A special item An extraordinary item Ordinary expense, disclosed in the notes to the financial statements b. Record the estimated impairment loss in the journal for governmental activities at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Governmental Activties Transaction General Journal Debit Credit 1. Record the estimated impairment loss. Governmental Activities In the current year, the building occupied by Sunshine City's Culture and Recreation Department suffered severe structural damage as a result of a hurricane. It had been 48 years since a hurricane had hit the Sunshine City area, although hurricanes in Sunshine City's geographic area are not uncommon. The building had been purchased 10 years earlier at a cost of $2,900,000 and had accumulated depreciation of $725,000 as of the date of the hurricane. Based on a restoration cost analysis, city engineers estimate the impairment loss at $320,000; however, the city expects during the next fiscal year to receive insurance recoveries of $165,000 for the damage. Required a. Should the estimated impairment loss be reported as an extraordinary item? As a special item? A special item An extraordinary item Ordinary expense, disclosed in the notes to the financial statements b. Record the estimated impairment loss in the journal for governmental activities at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Governmental Activties Transaction General Journal Debit Credit 1. Record the estimated impairment loss. Governmental Activities