Kingbird inc. owns equipment that cost $672,000 and has accumulated depreciation of $174,000. the expected future net cash flows from the use of the asset are expected to be $444,000. the fair value of the equipment is $384,000.

prepare the journal entry, if any, to record the impairment loss. (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.)

account titles and explanation debit credit

Explanation:

In this scenario, we compare the values between book value and the fair value of equipment, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value - fair value

where,

Book value = Equipment cost - accumulated depreciation

                   = $672,000 - $174,000

                   = $498,000

And, the fair value is $384,000

Now put these values to the above formula  

So, the value would equal to

= $498,000 - $384,00

= $114,000

Now the journal entry would be

Loss on impairment A/c Dr $114,000

      To Accumulated depreciation A/c $114,000

(Being the impairment loss is recorded)

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20