The information that follows relates to equipment owned by Buffalo Limited at December 31, 2023: Cost Accumulated depreciation to date $8,190,000 910,000 Expected future net cash flows (undiscounted) 6,370,000 Expected future net cash flows (discounted, value in use) 5,778,500 Fair value 5,642,000 Costs to sell (costs of disposal) 45,500 At December 31, 2023, Buffalo 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 $45,500. (a1-a3) Assume that Buffalo 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 O 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 $5.92 million. Prepare the journal entry, if any, to record the increase in fair value. It is expected that the costs of disposal will total $45,500. No. Account Titles and Explanation (1) Debit Credit 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 $5.92 million. Prepare the journal entry, if any, to record the increase in fair value. It is expected that the costs of disposal will total $45,500. No. Account Titles and Explanation (1) (2) (3) eTextbook and Media List of Accounts Debit Credit