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Presented below is information related to equipment owned by Suarez Company at December 31, 2014.
Suarez intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $ 38,900. As of December 31, 2014, the equipment has a remaining useful life of 4 years.
(A) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014.
Prepare the entries to record the issuance of the bonds and the first semiannual interest payment assuming that the company uses effective-interest amortization.
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