1. The Codid Company has acquired a piece of equipment on January 1, 2017. On December 31, 2020, it decided to test it for impairment and provided you with the following information:

Equipment original cost	$340,000
Annual depreciation	30,000
Fair value	200,000
Costs to sell	2,000
Discounted future cash flows generated by the equipment	197,000
Undiscounted future cash flows generated by the equipment	205,000

Assuming Codid is a public company, determine the amount of impairment to be recorded on December 31, 2020, if any.

1. $22,000
2. $23,000
   3. $52,000
   4. $53,000