1. (Impairment) Presented below is information related to equipment owned by Broccolis Company at December 31, 2020 Original cost.... $ 6,000,000 Carrying amount 3,000,000 Fair value less costs to sell 2,400,000 Value-in-use..... 2,800,000 The equipment has a limited life of 20 years and no residual value. The company applies straight-line method to depreciate equipment. At the moment, the company is testing an impairment of equipment Instructions: 1. Prepare a journal entry, if necessary, to record the impairment of asset at December 31, 2020. 2. Prepare a journal entry to record depreciation expense for 2021. 3. Assume the recoverable amount of the equipment is $2,600,000 at December 31, 2022. Prepare a journal entry (if any) to record the reversal of impairment. 2. (Revaluation) Presented below is information related to equipment owned by Cecile Company at December 31, 2020 Equipment, bought on July 1, 2019 $12,000 Accumulated depreciation to date 1,500 Fair value 9,200 The company expected to use this equipment for 10 years and after which the company expects to be able to sell it for $2,000. Cecile Company elects to value this equipment using revaluation accounting. Assume straight-line method is applied for this class of equipment. Instructions: 1. Prepare a journal entry, if necessary, to record a revaluation at December 31, 2020. 2. Prepare the journal entries to record depreciation expense for 2021. 3. Prepare the journal entry (if any) to record an increase in fair value, if the fair value of equipment at December 31, 2022 is $7,600