Journalize.

Journalize the following PPE transactions and adjustments, and construct B/S as of 12/31/x2 and I/S for the year ended year 1 and 2. Part 1. XYZ Inc, purchased an expensive equipment at $100,000 at 10/1/x1 with Freight-in cost $20,000 from abroad. The equipment is expected to be used for 10 years with the residual value $10,000. 10/1/x1, aquired an equipment XYZ Inc, B/S as of 12/31/x2 Cash 200,000 12/31/x1, Depreciation of the equipment by Sum of year Digit method Equipment Acc.Depr 12/31/x2, Depreciation of the equipment by Sum of year Digit method Equip, net Truck C/S 200,000 Part 2. XYZ Inc, purchased a large delivery truck at $60,000 at 7/1/x1. Acc.Depr The useful life of the truck is expected to be 8 years with residual value $10,000. Truck, net R/E Depreciation method applied for the year 1 was Straight Line but the firm changed the Depreciation method with 200% Double Declining Balance for the year 2. Other Asset 7/1/x1, purchased a truck Total Asset otal L + E 12/31/x1, Depreciation of the truck by Straight Line Method for the year 1. 1/S for the year ended 12/31/x1 Depr. Exp 12/31/x2, Depreciation of the truck by 200%% Double Declining Balance for the year 2. 1/S for the year ended 12/31/x2 Part 3. On 12/31/x2, XYZ Inc, tested impairement of the equipment that was purchased at 10/1/x1 from abroad (Part 1 transaction). The use of the equipment is now regulated Depr. Exp by the state environment law. So the firm could only use the equipment for the limited Loss on Impairment purposes but the firm decided not to dipose of the equipment. On 12/31/x2, The firm identified the Undiscounted Future Cash Flows of the equipment is $55,000; FMV of the asset $80,000; Selling cost $20,000. 12/31/x2, Impairment test and Impairment loss recognition, if any. If not, no entry. 12/31/x2, Reclassification of the equipment, if any. If not, no entry