Presented below is information related to equipment owned by Suarez Company at December 31, 2019.

Cost	16,587,000
Accumulated depreciation to date	1,843,000
Expected future net cash flows	12,901,000
Fair value	8,846,400

Assume that Suarez will continue to use this asset in the future. As of December 31, 2019, the equipment has a remaining useful life of 5 year.

1. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2019.

2. Prepare the journal entry to record depreciation expense for 2020.