Question

Norton, inc. purchased equipment in 2013 at a cost of $800,000. two years later it became apparent to norton, inc. that this equipment had suffered an impairment of value. in early 2015, the book value of the asset is $520,000 and it is estimated that the fair value is now only $320,000. the entry to record the impairment is

Answer 1

520,000−320,000=200,000

the entry to record the impairment is

Debt to loss on impairment of equipment. 200000
Credit to accumulated depreciation-equipment 200000