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Prepare the journal entry to record the impairment of asset

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Reference no: EM133174485

Question - Presented below is information related to equipment owned by Swifty Company at December 31, 2020.

Cost (residual value $0) $8,993,900

Accumulated depreciation to date 1,003,900

Value-in-use 5,547,800

Fair value less cost of disposal 4,374,440

Assume that Swifty will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 8 years. Swifty uses straight-line depreciation.

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

Reference no: EM133174485

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