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

cost $$9,000,000$

Accumulated depreciation to date $1,000,000$

expected future net cash flows $7,000,000$

fair value $4,800,000$

Suarez tends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $$20,000.$ As of December $31,2025,$ the equipment has a remaining useful life of $4$ years.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.$)$

Date Account ritles and Explanation

Debit

Credit

Dec. $31$

Inventory

Accumulated Depreciation $-$ Equipment

$($b$)$

Prepare the journal entry $($if any$)$ to record depreciation expense for $2026.($If no entry is required, select $"$No entry" for the occount

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.$)$

Account Titles and Explanation

Debit

Credit

$($c$).$

The asset was not sold by December $31,2026.$ The fair value of the equipment on that date is $$5,300,000.$ Prepare the journal

entry $($if any$)$ necessary to record this increase in fair value. It is expected that the cost of disposal is still $$20,000.($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.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31$