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Presented below is information related to equipment owned by Vaughn Company at December 31, 2017. Cost $9,360,000 Accumulated depreciation to date 1,040,000 Expected future net
Presented below is information related to equipment owned by Vaughn Company at December 31, 2017.
Cost | $9,360,000 | |
Accumulated depreciation to date | 1,040,000 | |
Expected future net cash flows | 7,280,000 | |
Fair value | 4,992,000 |
Vaughn intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,800. As of 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.
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