Exercise 11-23 The information that follows relates to equipment owned by Waterway Limited at December 31, 2020: Cost | | $8,010,000 | Accumulated depreciation to date | | 890,000 | Expected future net cash flows (undiscounted) | | 6,230,000 | Expected future net cash flows (discounted, value in use) | | 5,651,500 | Fair value | | 5,518,000 | Costs to sell (costs of disposal) | | 44,500 | At December 31, 2020, Waterway discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It is expected that the costs of disposal will total $44,500. | | | |