Presented below is information related to equipment owned by Pujols Company at December 31, 2014.

Cost (residual value $0)		$9,000,000
Accumulated depreciation to date		1,000,000
Value-in-use		5,500,000
Fair value less cost of disposal		4,400,000

Assume that Pujols will continue to use this asset in the future. As of December 31, 2014, the equipment has a remaining useful life of 8 years. Pujols uses straight-line depreciation.

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014.

Prepare the journal entry to record depreciation expense for 2015.

The recoverable amount of the equipment at December 31, 2015, is $6,050,000. Prepare the journal entry (if any) necessary to record this increase.