-- Exercises - Protected View - Saved - Search eferences Mailings Review View Help viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Sign In date. Please sign in as he******@outlook.com so we can verify your subscription. ..1.. ..2 . . ..3... ..4.. .5.. ..6 .1 .7.. Freeport Company owns equipment purchased in 2017 at a cost of $600,000 with an expected salvage value of $50,000 and 5 year weful life. Freeport uses the straight-line method of depreciation for this asset. Part A: Compute the book value of the equipment at the end of 2018 Calculation Depreciation Accumulated Book Value Expense Depreciation (Cost - Acc. Depr.) On December 31, 2018, after using the equipment for two years, Freeport suspects that the equipment may be impaired and has gathered the following information: Expected future cash flows from use and disposition (undiscounted) of the equipment are $400,000 Estimated fair value of the equipment is $360,000 Freeport plans to continue using the equipment Part B: Is the equipment impaired? If so, by what amount? Part C: Prepare any necessary journal entry to record any impairment. Now assume the following information Expected future cash flows from use and disposition (undiscounted) of the equipment are $340,000 Estimated fair value of the equipment is $320,000 Freeport plans to continue using the equipment eferences Mailings Review View Help viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing date. Please sign in as he******@outlook.com so we can verify your subscription Sign . .. ... ..2 . .3 . ..4 . ..5. . ..6... ..7... Part Dils the equipment impaired? If so, by what amount? Part E: Prepare any necessary journal entry to record any impairment