Make necessary journal entries for the events

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Problem 1: Make NECESSARY journal entries for the following events

1-Jan-10 purchased equipment at a cost of $400,000, installation cost $20,000. 10 year life and an expected salvage value at the end of 10 years of $20,000

31-Dec-10 fair value of equipment was $390,000 no impairment cost occurs

1-Jan-11 Useful life of computers determined to be 14 years to replace original assumption of 10 years salvage value to $30,000

31-Dec-11 Fair value of equipment determined to be $320,000 impairment cost occurs

31-Mar-12 Hampton sold equipment for $320,000

Reference no: EM132740177

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