Inferring Asset Impairment and Recording Disposal of an AssetIn a recent 10-K report, Unit...

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 a global leader in supply chain management.” The following note and data were reported:

Required:

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.)