Blossom Company has a December $31$ year end and uses straight$-$line depreciation for all property, plant, and equipment. On July $1,2022,$ the company purchased equipment for $$600,000.$ The equipment had an expected useful life of $10$ years and no residual value.

The company uses the nearest month method for partial year depreciation.

On December $31,2023,$ after recording annual depreciation, Blossom reviewed its equipment for possible impairment. Blossom determined that the equipment has a recoverable amount of $$261,800.$ It is not known if the recoverable amount will increase or decrease in the future.