Presented below is information related to equipment owned by Vaughn Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value (a) Your answer is partially correct. $10,350,000 Vaughn intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,000. As of December 31, 2025, the equipment has a remaining useful life of 4 years. Date Dec. 31 1,150,000 8,050,000 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 O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Loss on Impairment 5,520,000 Account Titles and Explanation Accumulated Depreciation - Equipment Debit 3657000 Credit 3657000

Presented below is information related to equipment owned by Vaughn Company at December 31, 2025. Vaughn intends to disposet of the equipment in the coming year. It is expected that the cost of disposal will be $23,000. As of Decernber 31,2025 , the equipment has a remaining useful life of 4 years. (a) Prepare the journal entry if any) to record the impairment of the asset at December 31, 2025. (II no entry is required, select "No entry for the occount titles and enter 0 for the amounts. Credit account titles are outomatically indented when amount is entered, Do not indent manually List debit entry before credit entry] Prepare the journal entry (if any) to record depreciation expense for 2026. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are autoriatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) The asset was not sold by December 31,2026. The fair value of the equipment on that date is $6,095,000, Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $23,000. (If no entry is required, select "No entry' for the account tities and enter 0 for the amounts. Credit account titles are outomatically indented when amount is entered. Do not indent manually. List debit entry before credit entry