Crane Company purchased equipment in $2019$ at a cost of $$901000.$ Two years later it became apparent to Crane Company that this equipment had suffered an impairment of value. In early $2021,$ the book value of the asset is $$580000$ and it is estimated that the fair value is now only $$363000.$ The entry to record the impairment is

Select answer from the options below

Retained Earnings

$217000$

Reserve for Loss on Impairment of Equipment

$217000$

No entry is necessary as a write$-$off violates the historical cost principle.

Retained Earnings

$217000$

Accumulated Depreciation$$Equipment

$217000$

Loss on Impairment of Equipment

$217000$

Accumulated Depreciation$$Equipment

$217000$