ABC Inc. applies the revaluation model to account for its Machinery and Equipment. On January 1, Year 1, its Machinery and Equipment had a net book value of $180,000. An impairment test revealed that the fair value of these assets on that date was $120,000. There was a $35,000 credit balance in the company's Revaluation Surplus - Machinery and Equipment account on that date.
What would journal entry to adjust ABC's Machinery and Equipment to fair value?