Impairment Loss On July 1, 2015, Karen Company purchased equipment for $325,000; the estimated useful life was 10 years and the expected salvage value was $40,000. Straight-line depreciation is used. On July 1, 2019, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Karen evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $195,000. die was ase event is one og den laget economie a. Is the equipment impaired at July 1, 2019? The equipment is impaired - b. If the equipment is impaired at July 1, 2019, calculate the amount of the impairment loss. Impairment loss = c. If the equipment is impaired at July 1, 2019, prepare the journal entry to record the impairment loss. General Journal Debit Credit July 1 To record impairment loss on equipment