Kmu Show Attempt HistoryCurrent Attempt in ProgressPresented below is information related to equipment owned by Marigold Company at December 31, 2025.CostAccumulated depreciation to dateExpected future net cash flowsFair value$9,360,0001,040,0007,280,0004,992,000Assume that Marigold will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful lifeof 5 years. Your answer is incorrect.The fair value of the equipment at December 31, 2026, is $5,304,000. Prepare the journal entry (if any) necessary to record thisincrease in fair value. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles areautomatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.)Date Account Titles and ExplanationAccumulated Depreciation - EquipmentDec. 31Recovery of Loss from ImpairmentDebit998,400Credit998,400

Fair value basically reflects the current market price or in other words the fair value of an asset…

Show Attempt History Current Attempt in Progress Presented below is information related to equipment owned by Marigold Company at December 31, 2025. $9,360,000 1,040,000 Cost Accumulated depreciation to date Expected future net cash flows Fair value 7,280,000 4,992,000 Assume that Marigold will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years.