Practice Problem 11-1 Sheridan Company manufactures routers used in industrial modems. On May 15, 2017, Sheridan purchased a precision welding machine at a retail price of $105,600. Sheridan paid 5% sales tax on this purchase and hired a contractor to build a "clean" platform enclosure for the machine for $7,950. Sheridan estimates the machine will have a 5-year useful life, with a salvage value of $8,800 at the end of 5 years. Sheridan uses straight-line depreciation and employs the "half-year" convention in accounting for partial-year depreciation. Sheridan's fiscal year ends on December 31 At what amount should Sheridan record the acquisition cost of the machine? Acquisition cost of the machine How much depreciation expense should Sheridan record in 2017 and in 2018? Depreciation expense 2017 s Depreciation expense 2018 At what amount will the machine be reported in Sheridan's balance sheet at December 31, 2018? Amount to be reported in balance sheet During 2019, Sheridan's circuit board business is experiencing significant competition from companies with more advanced low-heat circuit boards. As a result, at June 30, 2019, Sheridan conducts an impairment evaluation of the stamping machine purchased in 2017. Sheridan determines that undiscounted future cash flows for the machine are estimated to be $66,000 and the fair value of the machine, based on prices in the re-sale market, to be $57,000 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Aeceant Tales and Esplanain Click if you would like to Show Work for this question: en Show Work