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Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January $2019$ for $$10,000,000$ and had an estimated useful life of $8$ years with no salvage value. At December $31,2020,$ new technology was introduced that would accelerate the obsolescence of Roland's equipment. Roland's controller estimates that expected future net cash flows on the equipment will be $$6,300,000$ and that the fair value of the equipment is $$5,600,000.$ Roland intends to continue using the equipment, but it is estimated that the remaining useful life is $4$ years. Roland uses straight$-$line depreciation.

$($a$)$

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.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31$

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