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

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

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