Presented below is information related to equipment owned by Suarez Company at December 31, 2014.
| COST |
$ 17,505,000 |
| ACCUMULATED DEPRECIATION TO DATE |
1,945,000 |
| EXPECTED FUTURE NET CASH FLOWS |
13,615,000 |
| FAIR VALUE |
9,336,000 |
Suarez intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $ 38,900 . As of December 31, 2014, the equipment has a remaining useful life of 4 years.
(A) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014.