Lippi, Inc. purchased equipment in 2010 at a cost of $730,000. Four years later, the accumulated depreciation of the equipment is $250,000 and the expected undiscounted future cash flows from this asset is $485,000. It is estimated that the fair value is now only $398,000. The entry to record the impairment is

a.No entry is necessary.

b. DR Loss on Impairment of Equipment 87,000

CR Accumulated DepreciationEquipment 87,000

c. DR Loss on Impairment of Equipment 82,000

CR Accumulated DepreciationEquipment 82,000

d. DR Loss on Impairment of Equipment 332,000

CR Accumulated DepreciationEquipment 332,000