Question 20 Not yet Sloane, Inc. purchased equipment in 2015 at a cost of $600,000. Two years later it became apparent to Sloane, Inc. that this equipment had suffered an impairment of value. The book value of the asset is $360,000 and it is estimated that the fair value is now only $240,000. The entry to record the impairment is: answered Points out of 3.00 Select one: P Flag question a. Retained Earnings 120,000 Accumulated Depreciation - Equipment 120,000 O b. Loss on Impairment of Equipment 120,000 Reserve for Loss on Impairment of Equipment 120,000 c. No entry is necessary as a write-off violates the historical cost principle d. Loss on Impairment of Equipment 120,000 Accumulated Depreciation - Equipment 120,000 e. Retained Earnings 120,000 Reserve for Loss on Impairment of Equipment 120,000