Due to an office redesign in the Ontario building, FFI traded some old equipment for different equipment with a similar life and value in use. The fair value of the equipment disposed of was $5,000. The cost of this equipment was $7,000, and the accumulated depreciation on the equipment at December 31, 2019, was $3,000. This transaction was not recorded in the books of account. No entry was made to record the exchange. FFI uses ASPE.

Required: Determine the impact on the companys assets, liabilities, and net income of measuring the transaction with the carrying value versus the fair value.

Instruction: Write increase, decrease, or no impact in each box.

	Carrying Value	Fair Value
Assets
Liabilities
Net income