Problem #3 (Impairment) Presented below is information related to equipment owned by Davis Company at December 31, Cost $6,750,000 750,000 5,250,000 3,600,000 Accumulated depreciation to date Expected future net cash flows Fair value Assume that Davis will continue to use this asset in the future. As of December 31,2017, the l life of 4 years equipment has a remaining usefu Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (b) Prepare the journal entry to record depreciation expense for 2018. (c) The fair value of the equipment at December 31, 2018, is $3,825,000. Prepare the journal entry (if any) necessary to record this increase in fair value