Thyme Corporation's balance sheet includes the following asset:

Equipment:$110,000

Accumulated depreciation:20,000

After performing its annual review for impairment, Thyme obtains the following data:

Value in use:$64,000

Fair value:70,000

Selling costs:3,000

Required:

Assuming Thyme uses the rational entity impairment model:

a.Calculate the recoverable amount.

b.Calculate the impairment loss.

c.Prepare the entry to record the impairment loss.