S E4 Backup: Kieso, Intermediate Accounting, 12CE Help 1 System Announcements PRINTER VERSION BACK NEXT Problem 11-14 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 eprly April 2020, a part costing $890,000 and designed to increase the machinery's efficiency was added. The machine's estimated useful ife did not change with this addition By December 31, 2020, new technology had been introduced that would speed up the obsolescence of Riverbed's equipment Riverbed's controller estimates that expected undiscounted future net cash flows on the equipment would be $6.43 milion, and that expected discounted future net cash flows on the equipment would be $5.92 milion. Fair value of the equipment at December 31, 2020, was estimated to be $5.71 milion. Riverbed intends to continue using the equipment, but estimates that its remaining useful life is now four years. Riverbed uses straight-ine 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 o for the amounts. Round answers to o decimal places, e.g. 5,275.) Debit Credit Date Account Tities and Explanation December 31, 2020 SHOW LIST OF ACCOUNTS LINETOTEKT LINK TO TEKT LINK TO TEXT Fair value of the equipment at December 31, 2021, is estimated to be 56.02 million. Prepare any journal entries for the equipment at December 31, 2021. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "Me Entry for the account titles and enter for the amounts.) Debit Credit Date Accountities and Explanation December 31, 2021 BROW LIST OF ACCOURTS E4 Backup: Kieso, Intermediate Accounting, 12CE Help System Announcements PRINTER VERSION BACK LINK TO TEXT LINK TO TEXT LINK TO TEXT Repeat part (b), assuming that on December 31, 2021, Riverbed's management decides to dispose of the equipment. As at December 31, 2021, the asset is still in use and not ready for sale in current state. In February 2022, Riverbed's management will meet to outline an active program to find a buyer. (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 o for the amounts.) Debit Credit Date Account Titles and Explanation December 31, 2021 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Repeat part (b), assuming that the equipment is designated as "held for sale as of January 1, 2021, and that the equipment was not in use in 2021 but was still held by Riverbed on December 31 2021. (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 o for the amounts.) Deble Credit Date Account Titles and Explanation December 31, 2021 SHOW LIST OF ACCOUNT LINK TO TEXT UNK TO TEXT LIRE TO TERT BACK Hele 1 System Announcements PRINTER VERSION wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww www 2021. (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 enter o for the amounts.) Debit Credit Date Account Titles and Explanation December 31, 2021 ady SHOW LIST OF ACCOUNTS LINK TO TEKT LINK TO TEXT LINK TO TEXT Repeat parts () and (b), assuming instead that Riverbed is a public company that prepares financial statements in accordance with IFRS. (Credit account site are automatically indent the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts found answers to decimal place eg. 5,275. Record journal entries in the order presented in the problem.) Credit Debit Date Account Titles and Explanation (To record depreciation on Equipment) (To record the recovery of loss from impairment) SHOW LEST OF ACCOUNTS DD nao