The management of Bonita 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 $ with depreciation to date of $ as of December On
December management projected its future net cash flows from this equipment to be $ and its fair value to be
$ The company intends to use this equipment in the future.
a
Prepare the journal entry if any to record the impairment at December If no entry is required, select No entry" for the
account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent
manually. List debit entry before credit entry.
Date
Account Titles and Explanation
Debit
Credit
Dec.
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List of Accounts