NWC Company manufactures miniature circuit boards used in smartphones

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NWC Company manufactures miniature circuit boards used in smartphones. On June 5, 2020, NWC purchased a circuit board stamping machine at a retail price of $24,000. NWC paid 5% sales tax on this purchase and hired a contractor to build a specially wired platform for the machine for $1,800, to meet OSHA safety requirements. NWC estimates the machine will have a 5-year useful life, with a salvage value of $2,000 at the end of 5 years. NWC uses straight-line depreciation and employs the "half-year" convention in accounting for partial- year depreciation. NWC's fiscal year ends on December 31. Instructions a. At what amount should NWC record the acquisition cost of the machine? b. How much depreciation expense should NWC record in 2020 and in 2021? c. At what amount will the machine be reported in NWC's balance sheet at December 31, 2021? d. During 2022, NWC's circuit board business is experiencing significant competition from companies with more advanced low-heat circuit boards. As a result, at June 30, 2022, NWC conducts an impairment evaluation of the stamping machine purchased in 2020. NWC determines that undiscounted future cash flows for the machine are estimated to be $15,200 and the fair value of the machine, based on prices in the re-sale market, to be $13,400. Prepare the journal entry to record an impairment, if any, on the stamping machine.