Part 3: Impairment Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2020, new technology was introduced that would accelerate the obsolescence of Rolands equipment. Rolands controller estimates that expected future net cash flows on the equipment will be $6,300,000 and that the fair value of the equipment is $5,600,000. Roland intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Roland uses straight-line depreciation. Instructions a. Prepare the journal entry (if any) to record the impairment at December 31, 2020. b. Prepare any journal entries for the equipment at December 31, 2021. The fair value of the equipment at December 31, 2021, is estimated to be $5,900,000. c. Repeat the requirements for (a) and (b), assuming that Roland intends to dispose of the equipment and that it has not been disposed of as of December 31, 2021. Part 4: Decommissioning costs Oil Products Company purchases an oil tanker depot on January 1, 2020, at a cost of $6,000,000. Oil Products expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $750,000 to dismantle the depot and remove the tanks at the end of the depots useful life. Required: a. Prepare the journal entries to record the depot and decommissioning costs for the depot on January 1, 2020. Use interest rate of interest rate of 6%. b. Prepare any journal entries required for the depot and the decommissioning costs at December 31, 2020. Oil Products uses straight-line depreciation; the estimated salvage value for the depot is zero. c. On December 31, 2029, Oil Products pays a demolition firm to dismantle the depot and remove the tanks at a price of $870,000. Prepare the journal entry for the settlement of the decommissioning costs