Sunland Company uses special strapping equipment in its package business. The equipment was perchased in January 2024 for $11,300,000 and hd an estimated useful life of 8 years with no salvage value. At December 31, 2025, new technology was introduce that would accelerate the obsolescence of Sunland's equipment. Sunland's controller estimates that expected future net cash flows on the equipment will be $7,119,000 and that the fair value of the equipment is $6,328,000. Sunland intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Sunland uses straight-line depreciation.
(a)	Prepare the journal entry (if any) to record the impairment at December 31, 2025.
	(If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amoun is entered. Do not indent manually. List debit entry before credit entry.)
	Date		Account Titles and Explanation			Debit			Credit
	12/31/2025				$			$
					$			$
(b)	Prepare the journal entry for the equipment at December 31, 2026. The fair value of the equipment at Dember 31, 2026, is estimated to be $6,667,000.
	(If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.)
	Date		Account Titles and Explanation			Debit			Credit
	12/31/2026				$			$
					$			$
(c)	Prepare the journal entry (if any) to record the impairment at December 31, 2025, and at December 31, 2026, assuming that Sunland intends to dispose of the equipment and that it has not been disposed of as of December 31, 2026.
	(If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.)
	Date		Account Titles and Explanation			Debit			Credit
	12/31/2025				$			$
					$			$
	12/31/2026				$			$
					$			$