Staton Corporation's balance sheet includes Equipment recorded at a cost of $110,000 and accumulated depreciation of 20,000. After performing its annual review for impairment, Staton determined the following:

Asset value in use............................................................................. $69,000

Fair value less selling costs.............................................................. 67,000

Undiscounted cash flows... 89,000

Required:

a. Assuming Staton uses the rational entity impairment model record the appropriate entries. Show calculations.

b. Assuming Staton uses the cost recovery model calculate the impairment if any.