Evan Company purchased a machine for $1,400,000 on January 1, 2019. Evan estimates the machine will have a ten-year useful life and a salvage value of $200,000. Evan uses a straight-line depreciation method. On December 31, 2022, economic conditions suggested that Evan’s machine had become impaired. Evan estimates that expected future cash flows from using the equipment will be $360,000 and the fair value of the machine is $250,000. Evan intends to use the machine for two more years (2023 and 2024).
Prepare the entry (if any) Evan should make on 12-31-22 for impairment.
Prepare any entry (entries) Evan should make on 12-31-23 relating to using the machine.

Answer rating: 100% (QA)

a Cost Salvage value Annual depreciation Estimated ... View the full answer