This question: 1 point(s) possible Submit Derrick's Domino Manufacturing Company learned that one of its cutting machines is obsolete. Although the company will continue to use this machinery in the future management believes that an impairment write-down is required. The following inf relates to the cutting machine (Cick the icon to view the information) The firm estimates that the machine has a useful life of 10 years and it has used it for 4 years. It has no salvage value Read the requirements. Requirement a. Prepare the journal entry required to record the impairment loss. (Record debits first, then credits. Exclude explanations from any ouma entries.) Account Date of Impairment Requirement b. Assuming that Derrick's uses the straight-line method with no residual value, prepare the journal entry to record the revised depreciation expense for the first year immediately following the impairment. Account Substwuent Year Requirement c. Assume that 2 years following the impairment write down the tair value of the asset falls to $725.000 The sum of the undiscounted future cash flows is $745 000 What is the carrying value of the asset at this time? Prepare any journal entry necessary to reflect the change in fair value What is the carrying value of the asset at this time? The carrying value of the asset two years following the Prepare any journal entry necessary to reflect the change in fair value Record debis list, then credits. Exclude explanations from any journal entries. If no entry is required selea "No Entry Required on the first line of the journal entry table and leave all remaining cells in the table blank) Account Date of Impairment Requirement b. Assuming that Derrick's uses the straight-line method with no residual value prepare the journal entry to record the revised depreciation expense for the first year immediately following the impairment Account Subsequent Year Requirement c. Assume that 2 years following the impairment write down the fair value of the asset falls to $725 006 The sum of the undiscounted future cash flows is $745.000 What is the carrying value of the asset at this time? Prepare entry necessary to reflect the change in fair value What is the carrying value of the asset at this time? The carrying value of the asset two years following the impairment write down is Prepare any journal entry necessary to reflect the change in fair value Record debits first then credits Exclude explanations from any journal entries If no entry is required select "No Entry Required on the first line of the journal entry tabi remaining cells in the table blank.) Account Date of Impairment ing machines is obsolete. Although the company will continue to use this machinery in the future management believes it has used it for 4 years. It has no salvage value, ORO x Data table ain Date Description Cutting Machine Cost 3.200.000 3 1 280,000 Accumulated depreciation (up to the date of the impairment test) Total estimated future cash flows $ 1.225.000 Total discounted future cash flows 1.060.000 od Estimated fair value S 1.050.000 SU Costs to sell S 4.000 Remaining useful life from the impairment date 6 years Done e-oo write down is 5 lue Record gebits first, then credits Exclude explanations from any journal entries. If no entry is required select No Entry Date of Impairment