Presented below is information related to equipment owned by Nash Company at December 31, 2020.

Cost		$9,180,000
Accumulated depreciation to date		1,020,000
Expected future net cash flows		7,140,000
Fair value		4,896,000

Assume that Nash will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.

Your answer is correct. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec 31 Loss on Impairment 3264000 Accumulated Depreciation Equipment 3264000 Prepare the journal entry to record depreciation expense for 2021. (If no entry is required, select "No entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit No Entry 0 No Entry 0 Your answer is partially correct. The fair value of the equipment at December 31, 2021, is $5,202.000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Accumulated Depreciation Equipment 979200 Recovery of Loss from Impairment 979200