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Presented below is information related to equipment owned by Grouper Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $6,720,000 768,000 4,800,000 3,264,000 Assume that Grouper will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Your Answer Correct Answer Your answer is correct. Fill the missing amounts and choose the correct option. For Grouper company, the recoverability test compares $ 4800000 to $ 5952000 As a result e Textbook and Media List of Accounts Attempts: 3 of 3 used (b) Your answer is correct Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (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 for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 Loss on Impairment 2688000 Accumulated Depreciation Equipment 2688000 List of Accounts Attempts: 1 of 3 used Prepare the journal entry to record depreciation expense for 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 for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 Depreciation Expense 672000 Accumulated Depreciation Equipment 672000 e Textbook and Media List of Accounts Attempts: 3 of 3 used (d) The fair value of the equipment at December 31, 2021 is $3,264,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 List of Accounts Save for Later Attempts: 0 of 3 used Submit