Green Ltd$,$ had an asset.

Time left $0$

The asset was purchased before $3$ years for $$10,000$

The Company applied depreciation, so the accumulated depreciation on December $31,2020,$ was $$3,000.$

Other information $($on December $31,2020)$:

The fair value less cost of disposal was $$4,500$

The value$-$in$-$use was $$5,600$

Required:

I. Answer the questions below:

What would be the carrying amount of the asset on December $31,2020$:

What would be the recoverable amount of the asset on December $31,2020$:

IL$.$ Show the double journal entry regarding the impairment.

Use the table below for double journal entries. The number of rows in the table does not necessarily match the number of rows to be used. Meaning: there could be additional lines.N