(Answered) Question - presented below is information related to

Accounting

Question - Presented below is information related to equipment owned by Finley Co. at 12/31/12.

Cost $700000000

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.

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