#2 Dolphin Company (a US GAAP reporter) uses special strapping equipment in its packaging business. The equipment was purchased in January 2020 for $8,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2021, new technology was introduced that would accelerate the obsolescence of Dolphin's equipment. The equipment had been depreciated for two full years as of this date. Dolphin's controller estimates that expected future net cash flows on the equipment will be $5,000,000 and that the fair value of the equipment is $4,400,000. Dolphin intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Dolphin uses straight-line depreciation. Required: (a) What is the carrying value of the asset? (b) Prepare the journal entry (if any) to record the impairment at December 31, 2021. (c) Assuming that the fair value of the equipment increases to $4,600,000, prepare the journal entries required if Dolphin is: 1. A US GAAP reporter 2. An IFRS reporter