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.