Safety-First Company completed all of its October 31, 2020, adjustments in preparation for preparing its financial statements, which resulted in the following trial balance.

Account ................................................................................................ Balance
Accounts payable ................................................................................ $ 11,220
Accounts receivable ............................................................................ 19,800
Accumulated depreciation, building ................................................. 79,200
Accumulated depreciation, equipment ............................................ 37,400
Accumulated depreciation, furniture ................................................ 20,900
Allowance for doubtful accounts ....................................................... 880
Building ................................................................................................. 136,400
Cash ....................................................................................................... 11,000
Equipment ............................................................................................ 90,200
Expenses, including cost of goods sold ............................................ 761,200
Furniture ............................................................................................... 50,600
Land ....................................................................................................... 105,600
Merchandise inventory ....................................................................... 35,200
Note payable ........................................................................................ 85,800
Sales ...................................................................................................... 904,200
Tarifa Sharma, capital ......................................................................... 62,480
Unearned revenues ............................................................................ 7,920

Other information:

1. All accounts have normal balances.

2. $26,400 of the note payable balance is due by October 31, 2021.

The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule.

Asset ...................................................................................... Recoverable Value
Land ........................................................................................................ $136,400
Building .................................................................................................. 105,600
Equipment ............................................................................................. 28,600
Furniture ................................................................................................ 15,400

Required

1. Prepare the entry (entries) to record any impairment losses at October 31, 2020. Assume the company recorded no impairment losses in previous years.

2. Prepare a classified balance sheet at October 31, 2020.

Analysis Component: What is the impact on the financial statements of an impairment loss?