Identifying and Recording Impairment Loss on Equipment
Bolt Company purchased equipment on January of Year for $ This equipment has an estimated useful life of five years, a residual value of $ and is
depreciated using the sumoftheyears'digits method. At the beginning of Year Bolt suspects that the original investment in the asset will not be realized; the
total remaining future cash inflow expected to be produced through use of the equipment, including the original residual value, is $ The equipment's fair
value at January of Year is $
a Determine whether the asset is impaired and, if so the amount of the impairment loss on January of Year
Note: If the asset is not impaired, enter a zero or leave blank for the loss.
Note: Do not use a negative sign with your answer.
$
b Compute depreciation for Year
$
