Response to the following questions:
1. Identify the main difference between (1) plant assets and inventory, (2) plant assets and current assets, and (3) plant assets and long-term investments.
2. Assume a company's equipment carries a book value of $4,000 ($4,500 cost less $500 accumulated depreciation) and a fair value of $3,750, and that the $250 decline in fair value in comparison to the book value meets the 2-step impairment test.
Prepare the entry to record this $250 impairment.