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Question - Carla Vista Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a December 31 year end. It purchased equipment on January 1, 2017, for $186,700. The equipment had an estimated useful life of five years and a residual value of $20,060. On December 31, 2018, the company tests for impairment and determines that the equipment's recoverable amount is $108,600.
a) Assuming annual depreciation has already been recorded at December 31, calculate the equipment's carrying amount at December 31, 2018.
b) Calculate the amount of the impairment loss, if any.
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