Metlock Company uses special strapping equipment in its packaging business. The equipment was purchased in January $2024$ for $$1,000,000$ and had an estimated useful life of $8$ years with no salvage value. At December $31,2025,$ new technology was introduced that would accelerate the obsolescence of Metlock's equipment. Metlock's controller estimates that expected future net cash flows on the equipment will be $$6,930,000$ and that the fair value of the equipment is $$6,160,000.$ Metlock intends to continue using the equipment, but it is estimated that the remaining useful life is $4$ years. Metlock uses straight$-$line depreciation.

Prepare the journal entry for the equipment at December $31,2026.$ The fair value of the equipment at December $31,2026,$ is estimated to be $$6,490,000.($If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.$).$