Presented below is information related to equipment owned by Suarez Company on December 31, 2014.

|Cost|$9,180,000

|Accumulated depreciation to date|$1,020,000

|Expected future net cash flows|$7,140,000

|Fair value|$4,896,000

Suarez intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,400. As of December 31, 2014, the equipment has a remaining useful life of 4 years.

A. Prepare the journal entry (if any) to record the impairment of the asset on December 31, 2014.

B. Prepare the journal entry (if any) to record depreciation expenses for 2015.

C. The asset was not sold by December 31, 2015. The fair value of the equipment on that date is $5,406,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $20,400.