Sheridan Inc. purchased equipment for $$2421000$ in $2025.$ Three years later, the equipment has accumulated depreciation of $$750000$ and Sheridan has concerns that the equipment has been impaired. Future cash flows are estimated to be $$1583000.$ The current fair value of the equipment is estimated to be approximately $$1413000.$ The journal entry to record the impairment loss on the equipment will include

no impairment has occurred, so no journal entry is required.

debit to Accumulated Depreciation $-$ Equipment for $$258000.$

debit to Loss on Impairment for $$258000.$

credit to Accumulated Depreciation $-$ Equipment for $$87000.$