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

Cost

$$6,820,000$

Accumulated depreciation to date

$670,000$

Expected future net cash flows

$4,730,000$

Fair value

$3,430,000$

Assume that Novak will continue to use this asset in the future. As of December $31,2025,$ the equipment has a remaining useful life of $4$ years and no salvage value.

$($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 credit entry.$)$

$\backslash$table$[[$Date$,$Account Titles and Explanation,Debit,Credit$],[\backslash$table$[[$December$],[31,2025]],,,]]$