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Impairment Loss On July 1, 2012. Okin Company purchased equipment for $250,000, the estimated useful...

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Accounting

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Impairment Loss On July 1, 2012. Okin Company purchased equipment for $250,000, the estimated useful ife was 10 years and the expected salvage value was $25,000. Straight-line depreciation is used. On July 1, 2016, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Okin evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be 5125.000 a. Is the equipment impaired at july 1, 20167 The equipment is impaired Support b. If the equipment is impaired at July 1, 2016, calculate the amount of the impairment loss impairment loss - 285.000 c. If the equippment a impaired at july 1, 2016, prepare the journal entry to record the impairment loss General Journal Deble Credit ut impairment Loon Eument . 35.000 Recruited Depreconumento 35.000 To recordation

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