Question 3 of 6 3.81110 E Sandhill Company has a December 31 year end and uses straight line depreciation for all property, plant, and equipment. On July 1, 2019. the company purchased equipment for $570,000. The equipment had an expected useful life of 10 years and no residual value. The company uses the nearest month method for partial year depreciation On December 31, 2020, after recording annual depreciation. Sandhill reviewed its equipment for possible impairment. Sandhill determined that the equipment has a recoverable amount of $226,000. It is not known it the recoverable amount will increase on decrease in the future Your answer is partially correct Prepare journal entries to record the purchase of the asset on July 1, 2019. and to record depreciation expense on December 31 2019 and December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually to entry is required, select "No Entry" for the account titles and enter for the mounts Record journal entries in the order presented in the problem Debit Credit Date Account Titles and Explanation SC Cloudy di to search KE Question 3 of 6 3.81/10 Date Account Titles and Explanation Debit Credit July 1, 2019 Depreciation Expense 226000 Accumulated Depreciation Equipment To record cash purchase of equipment.) Dec 31, 2019 Depreciation Expanse 226000 Accumulated Depreciation Ecupunt To record depreciation expense.) II 1 Dec 31, 2020 Cash Accumulated Depreciation Equiment (To record depreciation expense) 3C Cloudy - 4 to search Question 3 of 6 3.81 / 10 Determine if there is an impairment loss at December 31, 2020. Impairment loss 344000 Prepare a journal entry to record it. (Credit account titles are automatically indented when the amount is entered Do not indent manually. If no entry is required, select "No Entry" for the accountles and enter for the amounts. Date Account Titles and Explanation Debit Credit Dec. 31 2020 Impairment Loss 344000 Accumulated Depreciation - Equipment 344000 To record impairment loss.) e Textbook and Media J" clouds -e to search 12:34 PM 3.81 / 10 x Your answer is incorrect. Calculate depreciation expense for 2021 and the carrying amount of the equipment at December 31, 2021. (Round answers to decimal places, eg. 5,275.) Depreciation expense $ 34400 Carrying amount $ 344000 e Textbook and Media List of Accounts Attempts: 2 of 5 used Submit Answer Seto 3' Cloudy n C