The management of Crane 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 $909,000 with depreciation to date of $404,000 as of December 31, 2020. On December 31, 2020, management projected its future net cash flows from this equipment to be $303,000 and its fair value to be $232,300. The company intends to use this equipment in the future.

(a)

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Prepare the journal entry (if any) to record the impairment at December 31, 2020.(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.)