Reference no: EM132317419

Exercise

Presented below is information related to equipment owned by Bramble Company at December 31, 2017.

Cost	$9,270,000
Accumulated depreciation to date	1,030,000
Expected future net cash flows	7,210,000
Fair value	4,944,000

Bramble intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,600. As of December 31, 2017, the equipment has a remaining useful life of 4 years.

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date Account    Titles and Explanation   Debit   Credit

Prepare the journal entry (if any) to record depreciation expense for 2018. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation   Debit  Credit