1: Ducharme Corporation purchased electrical equipment at a cost of $12,400 on June 2, 2017. From 2017 through 2020, the equipment was depreciated on a straight-line basis, under the assumption that it would have a 10-year useful life and a $2,400 residual value. After more experience and before recording 2021's depreciation, Ducharme revised its estimate of the machine's useful life downward from a total of 10 years to 8 years, and revised the estimated residual value to $2,000.

On April 29, 2022, after recording part of a year's depreciation for 2022, the company traded in the equipment on a newer model, and received a $4,000 trade-in allowance, even though the equipment's fair value was only $2,800. The new asset had a list price of $15,300 and the supplier accepted $11,300 cash for the balance. The new equipment was depreciated on a straight-line basis, assuming a seven-year useful life and a $1,300 residual value.

For Situation 1:

Required:

Journal Entry on June 02, 2017.

Adjusting Entry on December 31, 2017.

Adjusting Entry on December 31, 2018.

Adjusting Entry on December 31, 2021.

Journal Entry on April 29, 2022.

Adjusting Entry on December 31, 2021.

When calculating Partial Depreciation, Use nearest month.

Situation 4: On March 31, 2017, Wayside Corporation purchased a new piece of manufacturing equipment for $323,000. At that time, the estimated useful life of the equipment was five years, with a residual value of $65,000. On August 1, 2020, due to increased competition causing a decreased selling price for its product, Wayside decided to discontinue the product. By December 31, 2020, there was a formal plan in place to sell the equipment, and the equipment qualified for classification as held for sale. At December 31, 2020, the equipment's fair value less costs to sell was $52,000. Due to matters beyond Wayside's control, a potential sale of the equipment fell through in 2021, although consumer confidence in Wayside's product increased significantly because of reported defects in its competitors' products. The equipment remained classified as held for sale at December 31, 2021, when the equipment's fair value less costs to sell increased to $145,000. Wayside uses the straight-line method to depreciate its equipment.

Required: You are an employee of Wayside Corporation receiving a bonus based on income from continuing operations. If a loss results from the equipment classified as held for sale, how will you be affected under IFRS?