Problem 11-9 Vaughn Company uses special strapping equipment in its packaging business. The equipment was purchased i January 20 or 2.40O,000 and ad an estimated useful life of 8 years with no salvage value. At December 31, 2017, new technology was introduced that would accelerate the obsolescence of Vaughn's equipment. Vaughn's controller estimates that expected future net cash flows on the equipment will be $7,812,000 and that the fair value of the equipment is $6,944,000. Vaughn intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Vaughn uses straight-line depreciation Your answer is partially correct. Try again. Prepare the journal entry (if any) to record the impairment at December 31, 2017. (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.) Account Titles and Explanation Date Debit Credit Dec. 31 Loss on Impairment Accumulated Depreciation-Equipment Your answer is partially correct. Try again. Prepare the journal entry for the equipment at December 31, 2018. The fair value of the equipment at December 31, 2018, is estimated to be $7,316,000 (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.) Account Titles and Explanation Debit Credit Date Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment Prepare the journal entry (if any) to record the impairment at December 31, 2017 and for the equipment at December 31, 2018, assuming that Vaughn intends to dispose of the equipment and that it has not been disposed of as of December 31, 2018. (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.) Debit Date Account Titles and Explanation Credit 12/31/17 [Loss on Impairment Accumulated Depreciation-Equipment 12/31/18 Accumulated Depreciation-Equipment Recovery of Loss from Impairment