After recording depreciation for the current year, Media Mania Incorporated decided to discontinue using its printing equipment. The equipment had cost $754,000, accumulated depreciation was $559,000, and its fair value (based on estimated future cash flows from selling the equipment) was $54,000.

Required:

1. Determine whether the equipment is impaired.
2. Prepare the journal entries to record the impairment in asset if any.

1. The fair value is____and the book value is_______,therefore this asset________Impaired

2. Journal entries

1.a record the entry to remove accumulated depreciation

2.a Record the impairment loss