Identifying and Recording Impairment Loss on Equipment Bolt Company purchased equipment on January 1 of Year 1 for $54,400. This equipment has an estimated useful life of five years, a residual value of $6,400, and is depreciated using the sum-of-the-years'-digits method. At the beginning of Year 3, 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 $16,000. The equipment's fair value at January 1 of Year 3 is $11,200. a. Determine whether the asset is impaired and, if so, the amount of the impairment loss on January 1 of Year 3. Note: If the asset is not impaired, enter a zero (or leave blank) for the loss. Note: Do not use a negative sign with your answer. $ 0 x b. Compute depreciation for Year 3. $ 0 x Check