IV. Impairment Presented below is information related to equipment owned by Washington Company at December 31, 2020. Cost $2,400,000 Accumulated depreciation to date 300,000 Expected future net cash flows 1,600,000 Fair value 1,440,000 Assume that Washington will continue to use this equipment in the future. As of December 31, 2020, the equipment has a remaining useful life of 6 years. Instructions: a. Prepare the journal entry (if any) to record the impairment at December 31, 2020. Show ALL steps required. b. Prepare the journal entry to record depreciation for 2021