Problem 11-09 Novak Company uses specal strapping equipment in its packaging business. ne euphent was purchased in January 2019 for $12,500,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2020, new technology was introduced that would accelerate the obsolescence of Novak's equipment. Novak's controller estimates that expected future net cash flows on the equipment will be $7,875,000 and that the fair value of the equipment is $7,000,000. Novak intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Novak uses straight-line depreclation Prepare the joumal entry (if any) to record the impairment at December 31, 2020. (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 entered. Do not Indent manually.) Date Account Titles and Explanation Debit Credit . 31 Prepare the joumal entry for the equipment at December 31, 2021. The fair value of the equipment at December 31, 2021, is estimated to be $7,375,000. (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.) Date Account Titles and Explanation Debit Credit Dec. 31 Prepare the joumal entry (if any) to record the impairment December 31, 2020 and for the equipment at December 31, 2021, assuming that Novak intends to December 31, 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts, Credit account titles are automaw pose of the equipment and that it has not been disposed of as of indented when amount is entered. Do not indent manually.)