Blossom Company manufactures routers used in industrial modems. On May 15, 2017, Blossom purchased a precision welding machine at a retail price of $92,400. Blossom paid 5% sales tax on this purchase and hired a contractor to build a clean platform enclosure for the machine for $6,900. Blossom estimates the machine will have a 5-year useful life, with a salvage value of $7,700 at the end of 5 years. Blossom uses straight-line depreciation and employs the half-year convention in accounting for partial-year depreciation. Blossom's fiscal year ends on December 31. During 2019, Blossom's circuit board business is experiencing significant competition from companies with more advanced low- heat circuit boards. As a result, at June 30, 2019, Blossom conducts an impairment evaluation of the welding machine purchased in 2017. Blossom determines that undiscounted future cash flows for the machine are estimated to be $57,600 and the fair value of the machine, based on prices in the re-sale market, to be $50,000. Prepare the journal entry to record an impairment, if any, on the welding machine. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Loss on Impairment 25054 Accumulated Depreciation-Machinery 25054 Oriole Company uses special plastic wrapping equipment in its shipping business. The equipment was purchased in January 2016 for $4,240,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2017, new technology was introduced that would accelerate the obsolescence of Oriole's equipment. Oriole's controller estimates that expected future net cash flows on the equipment will be $2,968,000 and that the fair value of the equipment is $2,544,000. Oriole intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Oriole uses straight-line depreciation. Prepare the journal entry (if any) to record the impairment at December 31, 2017 and for the equipment at December 31, 2018, assuming that Oriole intends to dispose of the equipment and that it has not been disposed of as of December 31, 2018. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/17 Loss on Impairment 636000 Accumulated Depreciation-Equipment 636000 12/31/18 Accumulated Depreciation Equipment 1908000 Recovery of Loss from Impairment