Use the following information for the next three questions Salem Hospital uses special equipment in its brain surgery operations. The equipment was purchased in January 2022 for $8,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2023, new technology was introduced that would accelerate the obsolescence of Salem Hospital's equipment. Salem Hospital's controller estimates that expected future net cash flows on the equipment will be $5,000,000 and that the fair value of the equipment is $4,400,000. Salem Hospital estimates that the remaining useful life is 4 years and uses straight-line depreciation. Salem Hospital recognizes the correct depreciation expense and impairment at year end. On January 1, 2024, Salem Hospital decides that it intends to dispose of the equipment. However, as December 31, 2024, it has not yet been sold. What amount (if any) should Salem Hospital report as an impairment to its equipment for 2023? a. No impairment should be reported. O b. $1,000,000 O c. $1,600,000 O d. $3,600,000 QUESTION 16 What would be included in any entry for the equipment at December 31, 2024? O a. Credit to Accumulated depreciation of $1,250,000 O b. Credit to Accumulated depreciation of $733,333 O c. Debit to Depreciation expense of $1,100,000 O d. Debit to Depreciation expense of $1,000,000 Oe. No depreciation should be recorded QUESTION 17 Prepare any entry for the equipment on December 31, 2024 assuming the fair value is estimated to be $4,600,000. O a. Debit to impairment loss of $200,000 O b. Credit to recovery of impairment of $200,000 c. Credit to recovery of impairment of $1,300,000 O d. Credit to recovery of impairment of $100,000 e. There is no entry because you cannot recognize fair value gains on equipment