*Thomson's gain or loss on sale would recognize $8,333 on Apr 30, 2021.

Question: Determine the Loss on impairment amount Thomson would recognize on Dec 31, 2021.

Correct answer: $240,000

*Please explain ALL steps in finding the correct answer and where the numbers came from.

Useful life (Continued) Thomson's PP&E at the beginning of 2021 is summarized below. Fixed Asset at the beginning of 2021 Assets Acquisition Cost ($) Residual ($) Depreciation Date Method Building A 1/1/2020 1,000,000 200,000 Double-declining Truck A 1/1/2018 100,000 30,000 Straight-line 10 4 Thomson's 2021 transactions with regard to PP&E are as follow: (Jan 1) Purchased a Building B and Equipment A. Details needed to set up depreciation schedules are summarized below. Fixed assets purchased during 2021 Assets Acquisition Date Cost ($) Residual ($) Depreciation Useful life Method Building B 1/1/2021 2,000,000 500,000 Sum-of-the 10 years'-digits Equipment A 1/1/2021 80,000 5,000 Unit-of 5 production (Apr 30) Truck A was sold for $50,000. (Dec 31) Recorded depreciation expenses for all the assets. Equipment A's estimated total production capacity is 1000 units. In 2021, 300 units were produced. (Dec 31) Unexpected change in real-estate market condition indicated that the sum of undiscounted future cash flows for Building A is estimated at $500,000 and the fair value is estimated at $400,000. The remaining service life is 5 years and the residual value is updated to $80,000. Building A will resume depreciation using the new #s in 2022 based on the double-declining method. In 2022, Equipment A produced 200 units