Presented below is information related to equipment owned by Pronghorn Company at December 31, 2017.

Cost		$9,990,000
Accumulated depreciation to date		1,110,000
Expected future net cash flows		7,770,000
Fair value		5,328,000

Pronghorn intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,200. As of December 31, 2017, 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 31,2017

b) prepare the journal entry (if any) to record depreciation expense for 2018