Sage Corporation's balance sheet includes the following asset:

Equipment: $275,000

Accumulated depreciation: 85,000

Sage was notified of a significant change in the technology used to power the equipment and decided to test for impairment. Sage obtained the following data:

Future cash flows (undiscounted): $125,000

Value in use (discounted): 120,000

Fair value: 160,000

Selling costs: 8,000

Required:

Assuming Sage follows ASPE, calculate if the asset is impaired, and prepare any journal entries required. Show your calculations.