Sheffield Corporation uses special strapping equipment in its packaging business The equipment was purchased in January 2019 for $10 60 million and had an estimated useful life of 8 years with no residual value In early April 2020, a part costing $930,000 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 Sheffields equipment Sheffields controller estimates that expected undiscounted future net cash flows on the equipment would be $6 68 million, and that expected discounted future net cash flows on the equipment would be $6 15 million Fair value of the equipment at December 31, 2020, was estimated to be $5 94 million Sheffield intends to continue using the equipment, but estimates that its remaining useful life is now four years Sheffield uses straight line depreciation Assume that Sheffield 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 ) Date Account Titles and Explanation Debit Credit December 31, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Fair value of the equipment at December 31, 2021, is estimated to be $6 25 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 No Entry for the account titles and enter 0 for the amounts ) Date Account Titles and Explanation Debit Credit December 31, 2021 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Repeat part (b), assuming that on December 31, 2021, Sheffield'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 its current state In February 2022, Sheffield'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 0 for the amounts ) Date Account Titles and Explanation Debit Credit 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 Sheffield 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 0 for the amounts ) Date Account Titles and Explanation Debit Credit December 31, 2021 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Repeat parts (a) and (b), assuming instead that Sheffield is a public company that prepares financial statements in accordance with IFRS (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 Record journal entries in the order presented in the problem ) Date Account Titles and Explanation Debit Credit December 31, 2021December 31, 2020 December 31, 2021December 31, 2020 (To record depreciation on Equipment) December 31, 2020December 31, 2021 (To record the recovery of loss from impairment)

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Sheffield Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10.60 million and had an estimated useful

Sheffield Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10.60 million and had an estimated useful life of 8 years with no residual value. In early April 2020, a part costing $930,000 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 Sheffields equipment. Sheffields controller estimates that expected undiscounted future net cash flows on the equipment would be $6.68 million, and that expected discounted future net cash flows on the equipment would be $6.15 million. Fair value of the equipment at December 31, 2020, was estimated to be $5.94 million. Sheffield intends to continue using the equipment, but estimates that its remaining useful life is now four years. Sheffield uses straight-line depreciation. Assume that Sheffield 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.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2020

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Fair value of the equipment at December 31, 2021, is estimated to be $6.25 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 "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2021

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Repeat part (b), assuming that on December 31, 2021, Sheffield'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 its current state. In February 2022, Sheffield'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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2021

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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 Sheffield 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2021

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Repeat parts (a) and (b), assuming instead that Sheffield is a public company that prepares financial statements in accordance with IFRS. (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. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2021December 31, 2020

December 31, 2021December 31, 2020

	(To record depreciation on Equipment)
December 31, 2020December 31, 2021

	(To record the recovery of loss from impairment)