Problem 2: St. Nicholas, Inc. uses equipment in its manufacturing business. The equipment was purchased in January 2018 for $5,000,000 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 the equipment. The expected future net cash flows on the equipment will be $4,000,000 and that the fair value of the equipment is $3,300,000. St. Nicholas intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. St. Nicholas uses straight-line depreciation. Requirements: a) Prepare a journal entry, if needed to record any impairment that needs to be recognized at December 31, 2020. b) Record the adjusting entry for depreciation of this equipment to be made at December 31, 2021 for depreciation to be recognized for the fiscal year 2021