Fashion House Ltd. designs, manufactures, and markets clothing products for both women and men. The company conducted an impairment test for its property and equipment at December 31, 2016, the end of its fiscal year, and determined that the property and equipment were impaired. The effects of the company's transactions related to property and equipment during 2016 and the impairment losses are reflected in the following information.

Dollars in thousandsCost of property and equipment, January 1, 2016$43,742Cost of property and equipment, December 31, 201642,846Additions to property and equipment during the year3,974Accumulated depreciation and impairment losses, January 1, 201629,338Accumulated depreciation and impairment losses, December 31, 201627,834Depreciation expense during the year3,300Cost of equipment sold during the year4,870Accumulated depreciation on equipment sold4,870Cash received on equipment sold65

Required:1.Reconstruct the journal entry for the disposal of equipment during the year.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands of dollars.)