Presented below is information related to equipment owned by Sweet Company at December 31, 2017.

Cost $10,980,000

Accumulated depreciation to date 1,220,000

Expected Future net cash flows 8,540,000

Fair Value 5,856,000

Sweets intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. As December 31, 2017, the equipment has a remaining useful life of 5 years.

Prepare the journal entry (If any) to record the impairment of the asset at December 31, 2017.

Date Account Titles and Explanation Debit Credit

Dec 31 _______________________________ __________ _____________

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Prepared the Journal entry (If any) to record the impairment of the asset at December 31, 2017

Date Account titles and Explanation Debit Credit

Dec 31 _____________________________________ ____________ _____________

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Prepare the journal entry (if any) to record depreciation expenses for 2018

Account Titles and explanation Debit Credit

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