Sheridan Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a December 31 year end. It purchased equipment on January 1, 2017, for $196,600. The equipment had an estimated useful life of five years and a residual value of $20,050. On December 31, 2018, the company tests for impairment and determines that the equipments recoverable amount is $102,000.

a)Assuming annual depreciation has already been recorded at December 31, calculate the equipments carrying amount at December 31, 2018.

b)Calculate the amount of the impairment loss, if any.