NOTE 1SUMMARY 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. 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)	$ 54,620
Cost of property and equipment (end of year)	59,760
Capital expenditures during the year	6,490
Accumulated depreciation (beginning of year)	28,000
Accumulated depreciation (end of year)	29,300
Depreciation expense during the year	2,470
Cost of property and equipment sold during the year	1,350
Accumulated depreciation on property sold	1,170
Cash received on property sold	120

Required:

Reconstruct the journal entry for the disposal of property and equipment during the year.

Compute the amount of property and equipment that United Presents wrote off as impaired during the year, if any. (Hint: Set up T-accounts.)

Required 1:

Reconstruct the journal entry for the disposal of property and equipment during the year.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

Record the disposal of property and equipment during the year.

Required 2:

Compute the amount of property and equipment that United Presents wrote off as impaired during the year, if any. (Hint: Set up T-accounts.)

Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10)