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Prepare the journal entry to record the impairment

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Reference no: EM133104599

Question - The management of Waterway Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $1,071,000 with depreciation to date of $476,000 as of December 31, 2020. On December 31, 2020, management projected its future net cash flows from this equipment to be $357,000 and its fair value to be $273,700. The company intends to use this equipment in the future.

Required - Prepare the journal entry (if any) to record the impairment at December 31, 2020.

Reference no: EM133104599

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