Required:

$($a$)$ What is the carrying value $($book value$)$ of the equipment on December $31,2025?$

$($b$)$ Prepare the journal entry $($if necessary$)$ to record the impairment on December $31,2025.$

$($c$)$ Prepare any journal entries for the equipment at December $31,2026.$ The fair value of the equipment

on December $31,2026$ is estimated to be $$3,800,000.$