Knowledge Check 01 Masterworks Company has equipment with a cost of $200,000 and accumulated depreciation of $150,000. As a result of changed circumstances, Masterworks' management has determined the fair value of its production equipment is $35.000. Prepare the first and then the second journal entries to write down the equipment. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet Record the accumulated depreciation of $150,000. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the reduction in fair value of the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal