Riverbed Corporation uses special strapping equipment in its packaging business The equipment was purchased in January 2019 for $10 20 million and had an estimated useful life of 8 years with no residual value In early April 2020, a part costing $890,000 and designed to increase the machinerys efficiency was added The machines estimated useful life did not change with this addition By December 31, 2020, new technology had been introduced that would speed up the obsolescence of Riverbeds equipment Riverbeds controller estimates that expected undiscounted future net cash flows on the equipment would be $6 43 million, and that expected discounted future net cash flows on the equipment would be $5 92 million Fair value of the equipment at December 31, 2020, was estimated to be $5 71 million Riverbed intends to continue using the equipment, but estimates that its remaining useful life is now four years Riverbed uses straight line depreciation Assume that Riverbed is a private company that follows ASPE Prepare the journal entry to record asset impairment at December 31, 2020, if any (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 account titles and enter 0 for the amounts Round answers to 0 decimal places, e g 5,275 ) FILL IN THE BLANKS List of Accounts Accumulated Depletion Accumulated Depreciation Vehicles Accumulated Depreciation Buildings Accumulated Depreciation Equipment Accumulated Depreciation Furniture Accumulated Depreciation Machinery Accumulated Depreciation Vehicles Accumulated Impairment Losses Building Accumulated Impairment Losses Equipment Accumulated Impairment Losses Land Accumulated Impairment Losses Machinery Accumulated Impairment Losses Mine Accumulated Impairment Losses Patents Accumulated Impairment Losses Vehicles Allowance for Loss on Write down of Held for Sale Assets Asset Retirement Obligation Buildings Cash Common Shares Contribution Expense Cost of Goods Sold Deferred Revenue Government Grants Depreciation Expense Equipment Exploration Expense Furniture Gain on Disposal of Vehicles Gain on Disposal of Building Gain on Disposal of Equipment Gain on Disposal of Furniture Gain on Disposal of Machinery Gain on Disposal of Vehicle Gain on Disposal of Land Interest Expense Interest Payable Inventory Investment Property Land Loss on Disposal of Vehicles Loss on Disposal of Building Loss on Disposal of Equipment Loss on Disposal of Machinery Loss on Disposal of Land Loss on Disposal of Vehicles Loss on Expropriation Loss on Impairment Loss on Write down of Held for Sale Assets Machinery Mineral Resources No Entry Notes Payable Oil Property Recovery of Loss from Impairment Recovery of Loss from Write down of Held for Sale Assets Repairs and Maintenance Expense Retained Earnings Revaluation Surplus (OCI) Revenue Government Grants Royalty Expense Vehicles Date Account Titles and Explanation Debit Credit December 31, 2020

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Riverbed Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10.20 million and had an estimated useful

Riverbed Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10.20 million and had an estimated useful life of 8 years with no residual value. In early April 2020, a part costing $890,000 and designed to increase the machinerys efficiency was added. The machines estimated useful life did not change with this addition. By December 31, 2020, new technology had been introduced that would speed up the obsolescence of Riverbeds equipment. Riverbeds controller estimates that expected undiscounted future net cash flows on the equipment would be $6.43 million, and that expected discounted future net cash flows on the equipment would be $5.92 million. Fair value of the equipment at December 31, 2020, was estimated to be $5.71 million. Riverbed intends to continue using the equipment, but estimates that its remaining useful life is now four years. Riverbed uses straight-line depreciation. Assume that Riverbed is a private company that follows ASPE.

Prepare the journal entry to record asset impairment at December 31, 2020, if any. (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 account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

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