Chapter 12 Depreciation, Impairments, and Depletion 12-45 Exercise 12-75 Identilying and Recording Impairmont Loss Equipment LO7 Bolt Company purchased equipment on January 1, 2018, for $34,000. This equipment has an estimated usefu life of five years, a residual value of $4,000, and is depreciated using the sum-of-the-years'-digits method. At the beginning of 2020, Bolt suspects that the original investment in the asset will not be realized; the total remaining future cash inflow expected to be produced through use of the equipment, including the original residual value, is $10,000. The equipment's fair value at January 1,2020, is $7,000. Required a. Determine whether the asset is impaired and, if so, the amount of the impairment loss on January 1, 2020. b. Compute depreciation for 2020