The management of Bonita Inc. was discussing whether certain equipment should be written off as a charge to current operations

because of obsolescence. This equipment has a cost of $$981,000$ with depreciation to date of $$436,000$ as of December $31,2025.$ On

December $31,2025,$ management projected its future net cash flows from this equipment to be $$327,000$ and its fair value to be

$$250,700.$ The company intends to use this equipment in the future.

$($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 $O$ 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

Dec. $31$

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List of Accounts