Presented below is information related to equipment owned by Ayayai Company at December 31, 2017. Cost $10,530,000 Accumulated depreciation to date 1,170,000 Expected future net cash flows 8,190,000 Fair value 5,616,000 Assume that Ayayai will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017

Prepare the journal entry to record depreciation expense for 2018 The fair value of the equipment at December 31, 2018, is $5,967,000.

Prepare the journal entry (if any) necessary to record this increase in fair value