Problem 4: Dolphin Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $6,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2017, new technology was introduced that would accelerate the obsolescence of Dolphin's equipment. Dolphin's controller estimates that expected future net cash flows on the equipment will be $3,750,000 and that the fair value of the equipment is $3,300,000. Dolphin intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Dolphin uses straight-line depreciation. Instructions d. Ignore c. Assume that immediately after evaluating the equipment for impairment in value, the company took the asset out of operations and hold it for sale effective the beginning of 2018. The fair value of the equipment at December 31, 2018 is estimated to be $3,600,000. Prepare adjustment entry /entries as you deem fit