Presented below is information related to equipment owned by ACtiv Company on December 31, 2018.

Cost 10,000,000

Accumulated depreciation to date 2,500,000

Value-in-use 6,000,000

Fair value less the cost of disposal 5,400,000

Assume that ACtiv will continue to use this asset in the future. As of December 31, 2018, the equipment has a remaining useful of 4 years.

Instructions

(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2018.

(b) Prepare the journal entry to record depreciation expense for 2019.

(c) The recoverable amount of the equipment on December 31, 2019, is 5,250,000. Prepare the journal entry (if any) necessary to record this increase.

please i need this question quickly