"Newell, Inc. purchased equipment in 2011 at a cost of $800,000. Two years later it became apparent to Newell, Inc. that this equipment had suffered an impairment of value. In early 2013, the book value of the asset is $480,000 and it is estimated that the fair value is now only $320,000. The entry to record the impairment is"

No entry is necessary as a write-off violates the historical cost principle.

"Debit Retained Earnings, Credit Accumulated Depreciation Equipment"

"Debit Loss on Impairment of Equipment, Credit Accumulated Depreciation Equipment"

"Debit Retained Earnings, Credit Reserve for Loss on Impairment of Equipment"