On January 1, 2018, Bridgeport Ltd. purchased equipment for $888,000. The equipment was assumed to have an 8-year useful life and no residual value, and was to be depreciated using the straight-line method. On January 1, 2020, Bridgeport's management became concerned that the equipment may have become obsolete. Management calculated that the undiscounted future net cash flows from the equipment was $638,250, the discounted future net cash flows was $566,100, and the current fair value of the equipment (after costs to sell) was $555,000. 4 Instructions Assuming that Bridge port is a private Canadian company following ASPE and uses the Cost recovery impairme model a) Record the journal entry to record the impairment loss, if any. (show all workings) 4 marks Date Accounts and Fynlanati On January 1, 2018, Bridgeport Ltd. purchased equipment for $888,000. The equipment was assumed to have an 8-year useful life and no residual value, and was to be depreciated using the straight-line method. On January 1, 3. 2020, Bridgeport's management became concerned that the equipment may have become obsolete. Management calculated that the undiscounted future net cash flows from the equipment was $638,250, the discounted future net cash flows was $566,100, and the current fair value of the equipment (after costs to sell) was $555,000. 4 Instructions Assuming that Bridge port is a private Canadian company following ASPE and uses the Cost recovery impairment model a) Record the journal entry to record the impairment loss, if any. (show all workings) 4 marks Date Accounts and Explanations Debit Credit