Practice Problem 11-1 Pharoah Company manufactures routers used in industrial modems. On May 15, 2017, Pharoah purchased a precision welding machine at a retail price of $80,400 Pharoah paid 5% sales tax on this purchase and hired a contractor to build a "clean" platform enclosure for the machine for $6,000. Pharoah estimates the machine will have a 5-year useful life, with a salvage value of $6,700 at the end of 5 years. Pharoah uses straight-line depreciation and employs the "half-year" convention in accounting for partial-year depreciation. Pharoah's fiscal year ends on December 31. At what amount should Pharoah record the acquisition cost of the machine? Acquisition cost of the machine SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT How much depreciation expense should Pharoah record in 2017 and in 2018 Depreciation expense 2017 Depreciation expense 2018 At what amount will the machine be reported in Pharoah's balance sheet at December 31, 2018? Amount to be reported in balance sheet SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT During 2019, Pharoah's circuit board business is experiencing significant competition from companies with more advanced low-heat circuit boards. As a result, at June 30, 2019, Pharoah conducts an impairment evaluation of the stamping machine purchased in 2017. Pharoah determines that undiscounted future cash flows for the machine are estimated to be $50,400 and the fair value of the machine, based on prices in the re-sale market, to be $44,000 Prepare the journal entry to record an impairment, if any, on the welding machine. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit