The information that follows relates to equipment owned by Bonita Limited at December 31, 2020: Cost | | $9,990,000 | Accumulated depreciation to date | | 1,110,000 | Expected future net cash flows (undiscounted) | | 7,770,000 | Expected future net cash flows (discounted, value in use) | | 7,048,500 | Fair value | | 6,882,000 | Costs to sell (costs of disposal) | | 55,500 | At December 31, 2020, 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 $55,500. | | | |