Waterway Industries purchased equipment in 2019 at a cost of $906000. Two years later it became apparent to Waterway Industries that this equipment had suffered an impairment of value. In early 2021, the book value of the asset is $583000 and it is estimated that the fair value is now only $359000. The entry to record the impairment is
A. Retained Earnings 224000
Accumulated Depreciation-Equipment 224000
B. Loss on Impairment of Equipment 224000
Accumulated Depreciation-Equipment 224000
C. No entry is necessary as a write-off violates the historical cost principle.
D. Retained Earnings 224000
Reserve for Loss on Impairment of Equipment 224000
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