The information that follows relates to equipment owned by Bonita Limited at December $31,2023$:

Cost

$$7,830,000$

Accumulated depreciation to date

$870,000$

Expected future net cash flows $($undiscounted$)$

$6,090,000$

Expected future net cash flows $($discounted$,$ value in use$)$

$5,524,500$

Fair value

$5,394,000$

Costs to sell $($costs of disposal$)$

$43,500$

At December $31,2023,$ Bonita discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It is expected that the costs of disposal will total $$43,500.$

$($a$1-$a$3)$

Assume that Bonita is a private company that follows ASPE. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

$1.$

Prepare the journal entry at December $31,2023,$ to record asset impairment, if any.

$2.$

Prepare the journal entry to record depreciation expense for $2024.$

$3.$

Assume that the asset was not sold by December $31,2024.$ The equipment$$s fair value $($and recoverable amount$)$ on this date is $$5\mathrm{.}66$ million. Prepare the journal entry, if any, to record the increase in fair value. It is expected that the costs of disposal will total $$43,500.$