1. Assume that on the December 31st, 2019 adjusted trial balance, ABC Company showed equipment with a cost of $60,000 and accumulated depreciation of $30,000. As part of its year end procedures, ABC Company found that the equipment had a recoverable value of $24,000. What accounting treatment is required?

1. None
2. Credit equipment, debit impairment loss for $6,000
3. Debt impairment loss for $24,000, credit equipment
4. Credit accumulated depreciation for $6,000, debit impairment loss