Sheridan Snowboarding Company, a public company, purchased equipment on January 10, 2017, for $660,000. At that time, management estimated that the equipment would have a useful life of 10 years and a residual value of $50,000. Sheridan uses the straight-line method of depreciation and has a December 31 year end. Sheridan tested the equipment for impairment on December 31, 2021, after recording the annual depreciation expense. It was determined that the equipments recoverable amount was $289,000, and that the total estimated useful life would be eight years instead of 10, with a residual value of $10,000 instead of $50,000.

1.Calculate the annual depreciation expense for the years 2017 to 2021 and the carrying amount at December 31, 2021.

		Depreciation Expense	Carrying Amount
2017		$	$
2018		$	$
2019		$	$
2020		$	$
2021		$	$

2.Record the impairment loss, if any, 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
Dec. 31, 2021
	(To record impairment loss on equipment.)

3.What will appear on Sheridan's 2021 income statement with regard to this equipment?

Sheridan Snowboarding Company Income Statement (Partial) For the Year Ended 2021
		$