After recording depreciation for the current year, Media Mania Incorporated decided to discontinue using its printing equipment. The equipment had cost $$742,000,$ accumulated depreciation was $$528,000,$ and its fair value $($based on estimated future cash flows from selling the equipment$)$ was $$40,000.$

Required:

$1.$Determine whether the equipment is impaired.

$2.$Prepare the journal entries to record the impairment in asset, if any.