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Anonymous

Dec 18, 2024

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

Presented below is the information regarding the equipment owned by Suarez Company as of December 31, 2017. Please review the details carefully.

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Anonymous

Nov 25, 2024

Answer and Explanation:The journal entries are shown below:But before that following calculations need to be done For impairment loss Cost $9,000,000Less: Accumulated Deprecation-equipment $1,000,000Net Value $8,000,000Less: Fair value $4,800,000 Loss on Impairment $3,200,000For depreciation expenseFair value $4,800,000Life4 yearsDepreciation Expenses$ 1,200,000The journal entries are as follows:1 Loss on Impairment $3,200,000         To Accumulated Deprecation-equipment$3,200,000(being loss on impairment is recorded)2 Depreciation Expenses $1,200,000        To Accumulated Deprecation-equipment $1,200,000(Being depreciation expense is recorded)3 No Journal Entryis required
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