Assume a companys equipment carries a book value of $ 16,000 ($ 16,500 cost less $ 500

Question:

Assume a company’s equipment carries a book value of $ 16,000 ($ 16,500 cost less $ 500 accumulated depreciation) and a fair value of $ 14,750, and that the $ 1,250 decline in fair value in comparison to the book value meets the 2-step impairment test.
Prepare the entry to record this $ 1,250 impairment.