Testbank Problem 137 (Part Level Submission) Pina Colada Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $8,700,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2020, new technology was introduced that would accelerate the obsolescence of Pina Colada's equipment. Pina Colada's controller estimates that expected future net cash flows on the equipment will be $5,437,500 and that the fair value of the equipment is $4,785,000. Pina Colada intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Pina Colada uses straight-line depreciation. (a) What is the carrying value of the equipment at December 31, 2020? Carrying value $ Click if you would like to Show Work for this question: Open Show Work