The management of Oriole lnc$.$ was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $$1,179,000$ with depreciation to date of $$302,000$ as of December $31,202$ On December $31,2025,$ management projected its future net cash flows from this equipment to be $$686,000$ and its fair value to $$589,000.$ 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 $0$ for the amounts. Credit account titles are automotically indented when amount is entered. Do not indent manually. List debit entry before credit entry$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31$