Presented below is information related to equipment owned by Pujols Company at December 31, 2010.
Cost $11,430,000
Accumulated depreciation to date 1,270,000
Expected future net cash flows 8,890,000
Fair value 6,096,000
As of December 31, 2010, the equipment has a remaining useful life of 4 years. Assume that Pujols intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $25,400.
Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2010.