Presented below is information related to equipment owned by Skysong Company at December 31, 2025. Cost Accumulated depreciation to…

Presented below is information related to equipment owned by Skysong Company at December 31, 2025. Cost Accumulated depreciation to…

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Presented below is information related to equipment owned by Skysong Company at December 31, 2025. Cost Accumulated depreciation to…
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Presented below is information related to equipment owned by Skysong Company at December 31, 2025.
Cost
Accumulated depreciation to date
Expected future net cash flows
Fair value
Skysong intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,200. As of
December 31, 2025, the equipment has a remaining useful life of 5 years.
(a)
$9,540,000
1,060,000
7,420,000
5,088,000
Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (If no entry is required, select “No
entry” for the account titles and enter O 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
Dec. 31
Debit
Credit

Expert Answer:

Answer rating: 100% (QA)

To record the impairment of the asset at December 31 2025 we need to compare the carrying value book
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