Miller company purchased a truck January 1, 2017 for for $60,000. The truck had an estimated useful life of 6 years with no salvage value. At December 31, 2018, a change in their business plan made the truck obsolete. Miller's controller esitmates that expected future net cash flows on the truck will be $37,500 and that the fair value of the truck is $33,000. Miller uses straight-line depreciation.

(a) What is the carrying value of the truck on December 31, 2018?

(b) Is the asset impaired? Why?

(c) Prepare journal entry (if any at all) to record the impairment at December 31, 2018.

(d) Assume that Miller intends to dispose of the truck but it has not been disposed of as December 31, 2019. Prepare journal entries for the truck at December 31, 2019. The fair value of the truck at December 31, 2019 is estimated to be $34,500.

(e) Prepare any journal entry(s) for the truck at December 31, 2019 assuming Miller intends to continue using the truck, but it is estimated that the remaining useful life is 2 years. The fair value of the truck at December 31, 2019, is estimated to be $34,500.