M9-8 Recording Asset Impairment Losses (LO 9-4, LO 9-5) After recording depreciation for the current year, Media Mania Incorporated decided to discontinue using its printing equipment. The equipment had cost $750,000, accumulated depreciation was $550,000, and its fair value (based on estimated future cash flows from selling the equipment) was $50,000. 1. Determine whether the equipment is impaired. 2. Prepare the journal entries to record the impaired asset. Determine whether the equipment is impaired. The fair value is and the book value is Therefore this asset impaired. Prepare the journal entries to record the impaired asset. (If no entry is required for a transaction/event, select "No Journa Required" in the first account field.) View transaction list Journal entry worksheet Record the entry to remove accumulated depreciation. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Prepare the journal entries to record the impaired asset. (If no entry is required for a transaction/event, select "No Journa Required" in the first account field.) View transaction list Journal entry worksheet