Presented below is information related to equipment owned by Nash Company at December $31,2025.$

Cost

$$6,270,000$

Accumulated depreciation to date

$750,000$

Expected future net cash flows

$4,810,000$

Fair value

$3,320,000$

Assume that Nash will continue to use this asset in the future. As of December $31,2025,$ the equipment has a remaining useful life

of $4$ years and no salvage value.

$($a$)$

Your answer is correct.

Prepare the journal entry $($if any$)$ to record the impairment of the asset at December $31,2025.($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. List debit entry before credit entry.$)($b$)$

Prepare the journal entry to record depreciation expense for $2026.$ Use straight$-$line method. $($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. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

December

$31,2026$

Depreciation Expense

Accumulated Depreciation$-$Equipment

Debit

Credit

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