On January 1, 2012, Hamlin Company purchased equipment for $3.2 million.At the end of 2017, Hamlin believes the equipment may be impaired due to technological changes.

Management has acquired the following information for the equipment:

Cost $3,200,000

Accumulated Depreciation $1,575,000

Estimated Total Cash Flows - Undiscounted $1,200,000

Estimated Fair Value of Equipment$911,000

Required:

a. Determine whether or not equipment is impaired.

b. If impaired, what is the impairment loss?

Record the journal entry necessary to write down equipment.