Assume that Carleton reported the following information regarding a machine at December 31, 2019: Cost $60,000 Accumulated depreciation to date 30,000 Expected future net cash flows 26,000 Fair value 24,000

Assume that Carleton reported the following information regarding a machine at December 31, 2019: Cost $60,000 Accumulated depreciation to date 30,000 Expected future net cash flows 26,000 Fair value                                             24,000 Assuming that Carleton will continue to use this asset in the future and the machine has a remaining useful life of 4 years. Instructions Prepare the journal entry (if any) to record the impairment of the asset on December 31, 2019. Besides, prepare the journal entry to record depreciation expenses for  2020. Assuming that Carleton intends to dispose of the machine in the coming year. It is expected that the cost of disposal will be $1,000. However, the machine was not sold by December 31, 2020. The fair value of the machine on that date is $26,800. Prepare the journal entry (if any) necessary to record this increase in fair value. Assume that Carleton has a crane which has an original cost of $150,000, an estimated salvage value of $ 25,000, and useful life of 5 years. Carleton uses sum-of-the-year’s digit method to record depreciation for cranes. Now calculate depreciation for the crane for 2019, assuming that it was purchased on May 1, 2017.

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