Reveille, Inc uses special strapping equipment in its packaging
business. The equipment was purchased in January 2019 for
$6,000,000 and had an estimated useful life of 8 years with no
salvage value. At December 31, 2020, new technology was introduced
that would accelerate the obsolescence of Reveille’s equipment.
Reveille’s controller estimates that expected future net cash flows
on the equipment will be $3,750,000 and that the fair value of the
equipment is $3,300,000. Reveille intends to continue using the
equipment,...