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Current Attempt in Progress The information that follows relates to equipment owned by Pearl Limited at December 31, 2020 59.180.000 1020.000 7.140,000 Cost Accumulated depreciation

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Current Attempt in Progress The information that follows relates to equipment owned by Pearl Limited at December 31, 2020 59.180.000 1020.000 7.140,000 Cost Accumulated depreciation to date Expected future net cash flows fundiscounted) Expected future not cash flows discounted value in usel Fair value Costs to sell costs of disposal) 6,477.000 6.324.000 51.000 At December 31, 2020. Pearl discontinues use of the equipment and intends to dispose of it in the coming year by selling it to competitor. It is expected that the costs of disposal will total $51.000. Assume that Peart is a private company that follows ASPECredit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) 1. 2 Prepare the journal entry at December 31.2020, to record asset impairment. if any. Prepare the journal entry to record depreciation expense for 2021 Assume that the asset was not sold by December 31, 2021. The equipment's fair value (and recoverable amount) on this date is $6.63 million. Prepare the journal entry, if any, to record the increase in fair value. It is expected that the costs of disposal will total $51.000 3. 0.25/1 III Crusposa com No. Account Titles and Explanation Debit Credit (1) Loss on impairment I 1836000 Equipment 1836000 (2) Depreciation Expense 1581000 Accumulated Depreciation Equipment 1581000 (3) No Entry 0 No Entry Repeat the requirements in (a) above assuming that Pearl is a public company that follows IFRS, and that the set meets all criteria for classification as an asset held for sale. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts:) Debit Credit Account Titles and Explanation Accumulated Depreciation - Equipment (1) Recovery of Loss from Impairment (2) TA TATUE (3)

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