Presented below is information related to equipment owned by Sheridan Company at December 31, 2025. Cost $9,630,000 Accumulated depreciation to date $1,070,000 Expected future net cash flows $7,490,000 Fair value $5,136,000 Sheridan intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,400. As of December 31, 2025, the equipment has a remaining useful life of 4 years.

The asset was not sold by December 31, 2026. The fair value on that day is $5,671,000. Prepare the journal entry (if any) to record the increase in fair value. It is expected that the cost of disposal is still $21,400.