Assume the same information as E11-16, except that Pujols intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,000.

Instructions
  (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2012.
  (b) Prepare the journal entry (if any) to record depreciation expense for 2013.
  (c) The asset was not sold by December 31, 2013. The fair value of the equipment on that date is $5,100,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $20,000.