ABC Co.'s balance sheet includes the following asset, at December 31, 2019 after annual depreciation has been recorded:

Equipment....................................................... $120000

Less: accumulated depreciation....................... (40000)

Net Book value ................................................. $80000

After performing its annual review for impairment, ABC Co. obtains the following data:

Equipments value in use.................................. $78000

Equipments fair value less disposal costs.......... 76000

The remaining useful life of the asset at January 1, 2020 is 8 years. ABC Co. applies straight-line depreciation to its equipment assets and the equipment has a $6000 residual value. ABC Co. uses IFRS.

Required:

1. Determine the amount of impairment loss (using the rational entity impairment model).
2. Prepare the entry to record the impairment loss.
3. Prepare the journal entry to record the 2020 depreciation.
4. Assume the carrying value of the equipment, after recording 2020 depreciation, at December 31, 2020 is $69000 and that the carrying value of the equipment would have been $70750 if no impairment had been taken in 2019. The recoverable amount of the equipment at December 31, 2020 is $70000. Prepare the journal entry to record the impairment recovery for 2020.