Can you please give step-by-step solution to this ?

1.X Inc. owns equipment for which it paid $90 million. At the end of 2014, it had accumulated depreciation on the equipment of $17 million. Due to adverse economic conditions, X's management determined that it should assess whether the impairment should be recognized for the equipment. The estimated undiscounted future cash flows to be provided by the equipment total $60 million, and the equipment's fair value at that point is $40 million. What should X record related to this transaction?

a.Credit loss for $20 million

b.Credit equipment for $17 million

c.Debit loss for $33 million

d.Credit equipment for $33 million