Your answer is partially correct. Try again. The asset was not sold by December 31, 2021. The fair value of the equipment on that date is $5,936,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $22,400. (If no entry is required, select "No entry for the account tities and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit Debit Date Account Titles and Explanation 8937600 Dec. 31 Accumulated Depreciation 8937600 Recovery of loss from Presented below is information related to equipment owned by Coronado Company at December 31, 2020. Cost $10,000,000 Accumulated depreciation to date 1,120,000 Expected future net cash flows 7,840,000 Fair value 5,376,000 Coronado intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,400. As of December 31, 2020, the equipment has a remaining useful life of 5 years