12. (Impairment) The management of Alphonso Company was considering writing off certain equipment as a charge to current operations because of obsolescence. This equipment was acquired at a cost of $900,000 with depreciation to date of $400,000 as of December 31, 20x4. On December 31, 20x4 management projected future net cash flows on the equipment to be $300,000 and its fair value to be $230,000. The company intends to use the equipment in the future. REQUIRED: (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 20x4. (b) Where should the gain or loss (if any) on the write-down be reported in the income statement? (c) At December 31, 20x5, the equipment's fair value increased to $260,000. Prepare the journal entry (if any) to record this increase in fair value. (d) What accounting issues did management face in accounting for this impairment