Presented below is information related to equipment owned by Finley Co. at 12/31/12.
accumulated depreciation to date $800000
Expected future net cash flows $5000000
fair value $3400000
Assume the asset will continue to be used in the future and has 4 years useful life remaining.
a: prepare journal entry to record impairment at 12/31/12
b: prepare journal entry to record depreciation expense for 2013
c: the fair value of the equipment at 12/31/13 is $4100000; prepare the journal entry (if any) to record this increase in fair value.