Presented below is information related to equipment owned by Kingbird Company at December $31,2025.$

Cost

$$10,890,000$

Accumulated depreciation to date $,1,210,000$

Expected future net cash flows $,8,470,000$

Fair value

$5,808,000$

Assume that Kingbird will continue to use this asset in the future. As of December $31,2025,$ the equipment has a remaining useful life of $4$ years.

$($a$)$

Prepare the journal entry $($if any$)$ to record the impairment of the asset 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 credlt entry.$)$

Date

Account Titles and Explanatlon

Deblt

Credlt

Dec. $31$

eTextbook and Media

List of Accounts