May Inc. owns $2,000,000 of specialized equipment used in the production of a titanium and carbon composite driver used by professional golfers. The equipment was purchased and installed in January 2015 when the company estimated a 20 years useful life and $200,000 residual value. May uses straight-line depreciation. In January 2023, May completed development of a second generation driver with a carbon twist head that has significantly eaten into the market share of the original driver, dropping demand by 40%. At that time, May estimated that the total remining future net cash inflows from operating the original equipment to be $550,000 and the fair value of the equipment was expected to be $400,000. May expects the equipment to have no residual value and to be sued for the next three years only. a. Assess the equipment for impairment and record any losses on impairment that are necessary. If not needed, state "no entry." b. Determine the carrying value of the equipment. c. Prepare the depreciation entry needed at December 31, 2023.