Reference no: EM131941932

Question - Inferring Asset Impairment and Recording Disposal of an Asset In a recent 10-K report, United Parcel Service states it "is the world's largest package delivery company, a leader in the U.S. less-than-truckload industry, and the premier provider of global supply chain management solutions."

Cost of property and equipment (beginning of year) $39,151

Cost of property and equipment (end of year) 40,620

Capital expenditures during the year 2,328

Accumulated depreciation (beginning of year) 21,190

Accumulated depreciation (end of year) 22,339

Depreciation expense during the year 1,923

Cost of property and equipment sold during the year 840

Accumulated depreciation on property sold 774

Cash received on property sold 53

1. Reconstruct the journal entry for the disposal of property and equipment during the year.

2. Compute the amount of property and equipment that United Parcel wrote off as impaired during the year. (Hint: Set up T-accounts.)