Presented below is information related to equipment owned by Sunland Company at December 31, 2020. Cost $10,170,000 Accumulated depreciation to date 1,130,000 Expected future net cash flows 7,910,000 Fair value 5,424,000 Sunland intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,600. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Your answer is correct. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Loss on Impairment 3638600 Accumulated Depreciation-Equipment 3638600 e Textbook and Media (b) Your answer is partially correct. Prepare the journal entry (if any) to record depreciation expense for 2021. (If no entry is required, select "No entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Depreciation Expense 565000 Accumulated Depreciation-Equipment 565000 e Textbook and Media List of Accounts The fair value of the equipment at December 31, 2021, is $5,763,000. Prepare the journal entry (if any) necessary to record this increase in fair value. amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 e Textbook and Media