Presented below is information related to equipment owned by Davis Company at December 31, 2011 Cost $6,750,000 Accumulated depreciation to date 750,000 Fair value 4,834,000 Davis expects the equipment to generate cash flows of $1,525,000 per year over its remaining useful life of four years. Davis' discount rate for present value calculations is 10%. Assume that Davis will continue to use this asset in the future. As of December 31, 2011, the equipment has a remaining useful life of 4 years and no expected salvage value. a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2011 b) Prepare the journal entry to record depreciation expense for 2012