Exercise 11-16 (Part Level Submission) Presented below is information related to

Question

Exercise 11-16 (Part Level Submission) Presented below is information related to equipment owned by Cullumber Company at December 31, 2017 Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,800,000 1,200,000 8,400,000 5,760,000 Assume that Cullumber will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years. (a) 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 thct titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31

Explanation / Answer

Dec-31 Loss on impairment 3840000 =(10800000-1200000)-5760000          Accumulated depreciation-Equipment 3840000

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