Hirsch Company acquired equipment at the beginning of 2023 at a cost of $135,000. The equipment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2023, Hirsch compiled the following information related to this equipment:

a. Determine the appropriate accounting for this equipment for the years ending December 31, 2023, and December 31, 2024, under (1) U.S. GAAP and (2) IFRS.

b. Prepare the entry(ies) that Hirsch would make on the December 31, 2023, and December 31, 2024, conversion worksheets to convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2024.

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Expected future cash flows from use of the equipment. Present value of expected future cash flows from use of the equipment Fair value (selling price less costs to dispose)... $116,000 100,000 96,600