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The management of Bonita Inc. was discussing whether certain equipment should be written...

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Accounting

The management of Bonita Inc. was discussing whether certain equipment should be written off as a charge to current operations
because of obsolescence. This equipment has a cost of $981,000 with depreciation to date of $436,000 as of December 31,2025. On
December 31,2025, management projected its future net cash flows from this equipment to be $327,000 and its fair value to be
$250,700. The company intends to use this equipment in the future.
(a)
Prepare the journal entry (if any) to record the impairment at December 31,2025.(If no entry is required, select "No entry" for the
account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent
manually. List debit entry before credit entry.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
eTextbook and Media
List of Accounts
image

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