The following information was provided in the 2020 10-K of International Lodgings, Inc.

Note 7: Property and Equipment ($ millions)
	2020	2019
Property and equipment, gross	$998	$1,067
Accumulated depreciation and amortization	(583)	(611)
Property and equipment, net	$415	$456

During the year ended December 31, 2020, we recognized $34 million of impairment losses related to property and equipment, including $5 million for finance lease ROU assets,
which reduced the gross carrying value of property and equipment by $143, including finance lease ROY assets by $50 million, and the accumulated depreciation and amortization by
$109 million, including finance lease ROU assets by $46 million.

Note 7 also revealed that depreciation and amortization expense on property and equipment totaled $68 million in 2020. The statement of cash flows reported that expenditures
for property and equipment totaled $55 million in 2020 and that there were neither proceeds nor gain or loss on the sale of property and equipment during the year.

1. Using the information provided, prepare a journal entry and record in the FSET:
a. the acquisition of new property and equipment during the year;
b. the depreciation and amortization expense for the year;
c. the impairment of the company's property and equipment during the year.

	Account	Debit	Credit
	Accumulated depreciation and amortizationCashDepreciation and amortization expenseGain on sale of equipmentImpairment lossLoss on sale of equipmentProperty and equipment
	Accumulated depreciation and amortizationCashDepreciation and amortization expenseGain on sale of equipmentImpairment lossLoss on sale of equipmentProperty and equipment
	a. To record acquisition of property and equipment
	Accumulated depreciation and amortizationCashDepreciation and amortization expenseGain on sale of equipmentImpairment lossLoss on sale of equipmentProperty and equipment
	Accumulated depreciation and amortizationCashDepreciation and amortization expenseGain on sale of equipmentImpairment lossLoss on sale of equipmentProperty and equipment
	b. To record depreciation and amortization expense
	Accumulated depreciation and amortizationCashDepreciation and amortization expenseGain on sale of equipmentImpairment lossLoss on sale of equipmentProperty and equipment
	Accumulated depreciation and amortizationCashDepreciation and amortization expense again on sale of equipment impairment lossless on sale of equipment property and equipment
	Accumulated depreciation and amortizationCashDepreciation and amortization expense again on sale of equipment impairment lossless on sale of equipment property and equipment
	c. To record impairment of the company's property and equipment

	($ millions)	Balance Sheet														Income Statement
		Cash		Noncash		Contra				Contributed		Earned								Net
	Transaction	Asset	+	Assets	-	Assets	=	Liabilities	+	Capital	+	Capital				Revenues	-	Expenses	=	Income
a.	Acquisition of PPE
b.	Depreciation
c.	Impairment of PPE

Answer rating: 100% (QA)

Answer Acquisition of Property and Equipment The 2020 10K of International Lodgings Inc reported that expenditures for property and equipment totaled ... View the full answer