On January 1, 2020, Clark Inc. sold a piece of equipment to Daye Ltd. for $200,000, and immediately leased the equipment back. At the time, the equipment was carried on Clark’s books at a cost of $300,000, less accumulated depreciation of $120,000. The lease is a capital lease to Clark, with a lease term of five years. The equipment under capital lease will be depreciated in Clark’s books over five years using doubledeclining balance depreciation. 

(a) Calculate the amortization of the deferred gain on sale to be recorded at the end of 2020, if Clark follows ASPE. 

(b) Assume that 30% of the gain related to the rights transferred to Daye and 70% related to the right to use the equipment retained by Clark. Calculate the amount of gain to be recognized by Clark under IFRS 16.