Question: Problem 3 - Impairment. (8 Points) Presented below is information related to equipment owned by Santiago Castillo Limited at December 31, 2020. Assume that Santiago

Problem 3 - Impairment. (8 Points) Presented below is information related

Problem 3 - Impairment. (8 Points) Presented below is information related to equipment owned by Santiago Castillo Limited at December 31, 2020. Assume that Santiago Castillo Limited will continue to use this asset in the future. As of December 31,2020 , the equipment has a remaining useful life of 4 years. Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (4 Points) (b) Prepare the journal entry to record depreciation expense for 2021. (3 Points) (c) The fair value of the equipment at December 31,2021 is $4,100,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (1 Points)

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