- Listen The information that follows relates to equipment owned by Panda Limited a publicly listed company at December 31, 2020: The cost of the equipment is $8,280,000 and the accumulated depreciation of the equipment up to Dec.31.2020 is $920,000. At end of Dec.31, 2020 the company determined the expected future net cash flow for $6,440,000 undiscounted and $5,742,000 discounted. The fair value of the equipment at that time is determined to be $5,888,000 and it is expected to have $46,000 as cost of disposal. Assume that Panda will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of four years. Panda uses the double declining method of depreciation. The company is applying rational entity impairment model. Instructions 1. Prepare the journal entry at December 31, 2020, to record asset impairment, if any 2. Calculate depreciation expense for 2021 3. The equipment's fair value at December 31, 2021 is $5.98 million. Prepare the journal entry, if any, to record the increase in fair value. R A ES tv