On 6/30/17 a company purchases equipment for $60,000. There is no salvage value and the useful life is 5 years. The company adopts straight-line depreciation. On 12/31/2018 (please note, I said 2018, not 2017) an impairment test is conducted: a recoverability test suggests that the total expected future cash flows from the asset are equal to $40,000 and the fair value of the asset is estimated to be $35,000. The company intends to continue to use the equipment. QUESTION: What amount needs to be debited to an Impairment Loss account on 12/31/18? NOTE: Do not include the $ symbol in the answer. Also, use the comma to separate the thousands. For example, a correct answer will be "45,000", not "$45,000" or "45000". If your answer is zero, you write "O". (continued from the previous question) How much will be debited to depreciation expense in the year 2019? p/ (continued from the previous question) Which of the following statements are correct? (select all that apply - i.e., just one or as many as all of them) If the expected future cash flows were equal to $50,000 instead of $40,000, no entry would be required for the impairment test of the asset All else equal, if the company had used the sum of digits method instead of the straight line method of depreciation, the impairment loss would have been the same. If the expected future cash flows were equal to $50,000 instead of $40,000, a gain would be credited All else equal, if the asset's useful life was longer, the impairment loss would be larger All else equal, if the asset's fair value was higher, the impairment loss would be larger If the asset's fair value was equal to $30,000 instead of $35,000, the 2018 net income would be higher If the asset's fair value was equal to $30,000 instead of $35,000, the 2019 depreciation expense would be higher