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

Suarez intends 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 Titles and Explanation

Dec.

$31$

Debit

Credit