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Presented below is information related to equipment owned by Swifty Company at December $31,2025.$

Swifty intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $\backslash$$$20,600.$ As of December $31,2025,$ the equipment has a remaining useful life of $4$ years.

$($a$)$

Your Answer

Correct Answer

Your answer is correct.

Prepare the journal entry $($if any$)$ to record the impairment of the asset at December $31,2025.($If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.$)$

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Solution

List of Accounts

Attempts: $3$ of $3$ used

$($b$)$

Your answer is incorrect.

Prepare the journal entry $($if any$)$ to record depreciation expense for $2026.($If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

Loss on Impairment

Accumulated Depreciation $-$ Equipment $3,316,600$

eTextbook and Media

List of Accounts

Save for Later

Attempts: $2$ of $3$ used