Novak Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $9.40 million and had an estimated useful life of 8 years with no residual value. In early April 2020, a part costing $820,000 and designed to increase the machinery's efficiency was added. The machine's estimated useful life did not change with this addition. By December 31, 2020, new technology had been introduced that would speed up the obsolescence of Novak's equipment. Novak's controller estimates that expected undiscounted future net cash flows on the equipment would be $5.92 million, and that expected discounted future net cash flows on the equipment would be $5.45 million. Fair value of the equipment at December 31, 2020, was estimated to be $5.26 million. Novak intends to continue using the equipment, but estimates that its remaining useful life is now four years. Novak uses straight-line depreciation. Assume that Novak is a private company that follows ASPE.