14. Newell, Inc. purchased equipment in 2016 at a cost of $600,000. Two years later it became apparent to Newell, Inc. that this equipment had suffered an impairment of value. In early 2018, the book value of the asset is $360,000 and it is estimated that the fair value is now only $240,000. The entry to record the impairment is a. No entry is necessary as a write-off violates the historical cost principle. b. Retained Earnings.. 120,000 Accumulated Depreciation Equipment.. 120,000 c. Loss on Impairment of Equipment. 120,000 Accumulated Depreciation-Equipment... 120,000 d. Retained Earnings....... 120,000 Reserve for Loss on Impairment of Equipment........... 120,000