Lucren Company is considering a loss on impairment for one of its assets. Information on this asset follows:

Cost $9,000,000 Accumulated depreciation to date 1,000,000 Expected future net cash flows 7,000,000 Fair value 4,800,000

Assume that Lucren will continue to use this asset in the future. As of 12/31/21, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) at 12/31/21 to record impairment on this asset.

Debit Credit

Prepare the journal entry to record depreciation expense on the asset for the year 2022.

Debit Credit

Assuming the asset in questions 1 and 2 has an increase in fair value to $5,100,000 in 2022, prepare the journal entry (if any) necessary to record this increase.

Debit Credit

Assuming the asset in questions 1 and 2 has an increase in fair value to $5,100,000 in 2022 and that Lucren intends to dispose of the asset (cost of disposal is estimated at $20,000), prepare the journal entry (if any) necessary to record this increase.

Debit Credit

Given the data in question #4, prepare the depreciation expense entry (if any) for the asset at 12/31/21.

Debit Credit