During 2013, a company paid $1,200,000 to acquire a roller coaster. The estimated useful life of the roller coaster was estimated at ten years and its residual value was expected to be $200,000. As of December 31, 2018, Accumulated Depreciation in the amount of $500,000 had been recorded on the roller coaster. Management estimates that other amusement parks and scrap dealers would currently pay $600,000 for the roller coaster.

Required:

Part a. Determine the asset impairment loss, if any, on the roller coaster at December 31, 2018.

Part b. Prepare the journal entry to record the asset impairment loss on this roller coaster as of December 31, 2018.