Equipment purchased on January 2011 for $10,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2012, new technology was introduced that would accelerate the obsolescence of Rolando's equipment. Rolando's controller estimates expected future net cash flows on the equipment will be $6,300,000 and the fair value of the equipment if $5,600,000. Roland intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Roland uses straight line.

A) Prepare journal entry (if any) to record the impairment at December 31, 2012.

B) Prepare any journal entry for the impairment at December 31, 2013. The fair value of the equipment at December 31, 2013 is estimated to be $5,900,000.

C) Repeat the requirements for (A) and (B), assuming Roland intends to dispose of the equipment and that it has not been disposed of as of December 31, 2013

My request is can someone please help me with this accounting problem, I would appreciated it a lot? Honestly speaking I have tried it for 2 hours and tried to figure it out myself and went over what my teacher had said but still could not get to the answer could someone please help me solve this problem with showing all work because I want to learn as will just an answer would do me no good. Thank You.

Hey I just took an accounting mid term today and I am not quite up to where you are we haven't looked at variations like you have. I can only suggest an online video tutor system my school has RRCWiseguys's channel - YouTube (http://www.youtube.com/user/RRCWiseguys/videos?view=0) look through the accounting videos and see if any help.
Hop you find one