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

Cost

Accumulated depreciation to date

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

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

Fair value

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

$$9,900,000$

$1,100,000$

$7,700,000$

$6,985,000$

$6,820,000$

$55,000$

Assume that Sweet Acacia will continue to use this asset in the future. As at December $31,2023,$ the equipment has a remaining useful

life of four years. Sweet Acacia uses the straight$-$line method of depreciation.