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

Cost $9,900,000

Accumulated depreciation to date 1,100,000

Expected future net cash flows 7,700,000

Fair value 5,280,000

Metlock intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,000. As of December 31, 2025, the equipment has a remaining useful life of 5 years.

Prepare the journal entry to record the impairment of the asset at December 31, 2025.