The management of Sprague Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment was purchased in 1 January 2021 at a cost of $900,000, with an estimated useful life of 5 years, depreciated with sum of years digit method. On December 31, 2021, management projected the present value of future net cash flows from this equipment to be $300,000 and its fair value less cost of disposal to be $280,000. The company intends to use this equipment in the future. The remaining useful life of the equipment is 3 years. Instructions (a) Prepare the journal entry (if any) to record the depreciation and impairment at December 31,2021 (b) Prepare the journal entry to record depreciation expense for 2022 (c) At December 31, 2022, the equipment's recoverable amount is $270,000. Prepare the journal entry. (if any)