The information that follows relates to equipment owned by Buffalo Limited at December 31, 2020: Cost Accumulated depreciation to date $9,720,000 1,080,000 Expected future net cash flows (undiscounted) 7,560,000 Expected future net cash flows (discounted, value in use) 6,858,000 Fair value 6,696,000 Costs to sell (costs of disposal) 54,000 At December 31, 2020, 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 $54,000.