Q4: A company owns equipment that costs $450,000 and has accumulated depreciation of $190,000. The present value of expected future net cash flows from the use of the equipment are expected to be $250,000. The fair value less cost of disposal of the equipment is $200,000. Prepare the journal entry, if any, to record the impairment loss. 11-29 Q5: On Jan 1, 2010, Red Sea Development company purchased a crane for $1,200,000 with estimated useful life of 200,000 hours and salvage value of $200,000. On Jan 1, 2016, the crane had been used for 100,000 hours. On the same date, the Red Sea management conducted an impairment test on the crane. The results of the impairment test revealed that the market value less the cost to sell for the crane was $500,000 while the present value of future net cash flows from the use of the crane over the remaining hours with no residual value was $550,000 (value in use). Requirements: 1. What was the carrying value of the crane on Jan 1, 2016? 2.What was the recoverable value of the crane on Jan 1, 2016? 3.Was the crane impaired on Jan 1, 2016? If so, what was the impairment loss? 4.In which financial statement should this impairment loss be reported? 5.If the crane was used for only 30,000 hours during 2016, what was its 2016 depreciation expanse under activity method