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Recording Impairment Loss on Asset Held for Sale WellCon Corporation, a calendar-year corporation, plans to...

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Recording Impairment Loss on Asset Held for Sale WellCon Corporation, a calendar-year corporation, plans to dispose of a plant asset with a carrying value of $50,000 (cost is $75,000 and accumulated depreciation is $25,000) on December 31, 2020, after recording depreciation on the asset. The fair value of the asset is $40,000 at the time, and estimated costs to sell are $5,000. The asset remains in WellCon's possession one year later. The fair value and estimated costs to sell are revised to $32,000 and $4,000, respectively, on that date. Provide the entries on December 31, 2020, and 2021, to record the impairment loss and revaluation. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Dr. Cr. 15,000 0 Date Account Name Dec. 31, 2020 Loss on Impairment Accumulated Depreciation Dec. 31, 2021 Loss on Impairment Accumulated Depreciation 0 15,000 . 6,000 x 0 1 0 36,000 x Check

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