Question

Sheridan Technology purchased equipment on January 4, 2019, for $251,510. The equipment had an estimated useful life of 6 years and a residual value of $9,710. The company has a December 31 year end and uses straight-line depreciation. On December 31, 2021, the company tests for impairment and determines that the equipment's recoverable amount is $87,360.

Calculate the equipment's carrying amount at December 31, 2021 (after recording the annual depreciation).

Carrying amount Dec. 31, 2021

$enter the equipment's carrying amount at December 31 in dollars

List of Accounts

  

  

Record the impairment loss. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title to record impairment loss on December 31	enter a debit amount	enter a credit amount
	enter an account title to record impairment loss on December 31	enter a debit amount	enter a credit amount
	(To record impairment loss.)

Answer 1

Note 1: Depreciation has been calculated for whole year instead of equipement purchased on 4th Jan. It can also be calculated for 362 days instead for whole year.

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