NOTE 1-SUMMARY OF ACCOUNTING POLICIES Property. Plant and Equipment We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on the undiscounted future cash flows of the asset. If the carrying amount of the asset is determined not to be recoverable, a write down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as appropriate Dollars in Millions Cost of property and equipment (beginning of year) $43,674 Cost of property and equipment (end of year) 48,726 Capital expenditures during the year 5,652 Accumulated depreciation (beginning of year) 24,874 Accumulated depreciati (ond of year) 26,608 Depreciation expense during the year Cost of property and equipment sold during the year 600 Accumulated depreciation on property sold Cash received on property sold 2.282 548 24 Required: 1. Reconstruct the journal entry for the disposal of property and equipment during the year. 2. Compute the amount of property and equipment that United Parcel wrote off as impaired during the year, if any. (Hint: Set up T- accounts.)