The management of Metlock Inc, a small private company that uses the cost recovery impairment model, was discussing whether

certain equipment should be written down as a charge to current operations because of obsolescence. The assets had a cost of

$$800,000,$ and depreciation of $$300,000$ had been taken to December $31,2023.$ On December $31,2023,$ management projected the

undiscounted future net cash flows from this equipment to be $$330,000,$ and its fair value to be $$260,000.$ The company intends to

use this equipment in the future.

$($a$)$Assume instead that, as at December $31,2023,$ the equipment was expected to have undiscounted future net cash flows of

$$44,000$ per year for each of the next $10$ years, and that there is no active market for the equipment. Metlock uses a $10\%$

discount rate in its cash flow estimates. Prepare the journal entry to record impairment at December $31,2023,$ 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. List debit entry before credit entry. Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$

and final answers to $0$ decimal places, e$.$g$.1,251.)$

Click here to view Table A$.4-$ PRESENT VALUE OF AN ORDINARY ANNUITY OF $1$