The information that follows relates to equipment owned by Headlands Limited at December 31, 2020: Cost $9,270,000 Accumulated depreciation to date 1,030,000 7,210,000 Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) 6,540,500 Fair value 6,386,000 Costs to sell (costs of disposal) 51,500 At December 31, 2020, Headlands 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 $51,500