Marigold Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10,400,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2020, new technology was introduced that would accelerate the obsolescence of Marigold's equipment. Marigold's controller estimates that expected future net cash flows on the equipment will be $6,552,000 and that the fair value of the equipment is $5,824,000. Marigold intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Marigold uses straight-line depreciation.