The information that follows relates to equipment owned by Bonita Limited at December $31,2023$:Cost$$7,830\mathrm{.}000$Accumulated depreciation to date$870,000$Expected future net cash flows $($undiscounted$)6,090,000$Expected future net cash flows $($discounted$,$ value in use$)5\mathrm{.}524\mathrm{.}500$Fair value$5,394,000$Costs to sell $($costs of disposal$)43\mathrm{.}500$At December $31,2023,$ Bonita discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It is expected that the costs of disposal will total $$43,500.$ Assume that Bonita is a private company that follows ASPE. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entily is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Prepare the journal entry at December $31,2023,$ to record asset impairment, if any.

Prepare the journal entry to record depreciation expense for $2024.$
Assume that the asset was not sold by December $31,2024.$ The equipment's fair value $($and recoverable amount$)$ on this date is $$5\mathrm{.}66$ million.

Prepare the journal entry, if any, to record the increase in fair value. It is expected that the costs of disposal will total $$43\mathrm{.}500.$No$.$ Account Titles and Explanation

Answer rating: 100% (QA)

Bonita Limited Equipment Impairment and Depreciation ASPE December 31 2023 1 Impairment Loss if any ... View the full answer