Robert Company uses special equipment in its packaging business. The equipment was purchased in January 2019 for $10,000,000 and had an estimated useful life of 8 years with no residual value. In the first two years 2019-2020, no impairment was determined to be necessary. At December 31, 2021, new technology was introduced that would accelerate the obsolescence of Roberts equipment. Roberts controller estimates that the present value of expected future net cash flows on the equipment will be $5,600,000 and that the fair value less costs to sell the equipment will be $5,700,000. Robert intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Robert uses straight-line depreciation. Instructions

(a) Prepare the journal entries to record the depreciation and/or impairment at December 31, 2021.

(b) Prepare any journal entries for the equipment at December 31, 2022. The recoverable amount of the equipment at December 31, 2022, is estimated to be $4,900,000.

(c) Repeat the requirement (b), assuming that Robert intends to dispose of the equipment and that it has not been disposed of as of December 31, 2021.