Akhbar Bhd uses special strapping equipment in its packaging business. The equipment was purchased in January 2014 for RM10,000,000 and had an estimated useful life of 8 years with no residual value. At 31 December 2015, new technology was introduced that would accelerate the obsolescence of Akhbar Bhds equipment. Akhbar Bhds controller estimates that the present value of expected future net cash flows on the equipment will be RM5,300,000 and that the fair value less costs to sell the equipment will be RM5,600,000. Akhbar Bhd intends to continue using the equipment but it is estimated that the remaining useful life is 4 years. The company uses straight-line depreciation. Required:

Prepare the journal entry (if any) to record the impairment at 31 December 2015

Prepare any journal entries for the equipment at 31 December 2016. The recoverable amount of the equipment at 31 December 2016 is estimated to be RM4,900,000.