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Prepare the journal entry for the equipment at December 31, 2026. The fair value of the equipment at December 31, 2026, is estimated to be

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Prepare the journal entry for the equipment at December 31, 2026. The fair value of the equipment at December 31, 2026, is estimated to be $6,195,000. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Concord Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2024 for $10,500,000 and had an estimated useful life of 8 years with no salvage value. At December 31,2025 , new technology was introduced that would accelerate the obsolescence of Concord's equipment. Concord's controller estimates that expected future net cash flows on the equipment will be $6,615,000 and that the fair value of the equipment is $5,880,000. Concord intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Concord uses straight-line depreciation. Prepare the journal entry (if any) to record the impairment at December 31, 2025. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Prepare the journal entry (if any) to record the impairment at December 31, 2025 and at December 31, 2026, assuming that Concord intends to dispose of the equipment and that it has not been disposed of as of December 31, 2026. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)

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