La Mancha Enterprises completed all of its March 31, 2020, adjustments in preparation for compiling its financial statements, which resulted in the following trial balance.

Account ............................................................................... Balance
Accounts payable ................................................................ $ 14,750
Accounts receivable ............................................................... 57,500
Accumulated depreciation, computer equipment ............. 40,250
Accumulated depreciation, machinery .............................. 152,500
Accumulated depreciation, warehouse ............................ 286,500
Allowance for doubtful accounts ........................................... 6,000
Cash ......................................................................................... 35,000
Computer equipment ............................................................ 72,500
Expenses, including cost of goods sold .......................... 1,246,750
Joy La Mancha, capital .......................................................... 407,875
Land ........................................................................................ 145,000
Machinery............................................................................... 241,250
Mortgage payable .................................................................. 93,750
Office supplies .......................................................................... 4,875
Revenues ............................................................................ 1,227,500
Salaries payable ..................................................................... 33,750
Warehouse ........................................................................... 460,000

Other information:

1. All accounts have normal balances.

2. $34,200 of the mortgage balance is due beyond March 31, 2021.

The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule.

Asset Recoverable Value
Computer equipment ....................................................... $ 6,250
Land ................................................................................... 172,500
Machinery............................................................................ 65,000
Warehouse ....................................................................... 243,750

Required

1. Prepare the entry (entries) to record any impairment losses at March 31, 2020. Assume the company recorded no impairment losses in previous years.

2. Prepare a classified balance sheet at March 31, 2020.

Analysis Component: How does the recording of an impairment loss affect equity, if at all?