Hirsch Company acquired equipment at the beginning of 2020 at a cost of $154,000. The equipment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2020, Hirsch compiled the following information related to this equipment: Expected future cash flows from use of the equipment Present value of expected future cash flows from use of the equipment Fair value (selling price less costs to dispose) $ 126,600 111,500 108,470 Assume that Hirsch Company is a U.S.-based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes. Required: a. Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS. b. Prepare the entry(ies) that Hirsch would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2021. No Date General Journal Credit Debit 154,000 1 01/01/2020 Equipment Cash 154,000 2 12/31/2020 30,800 Depreciation expense Accumulated depreciation-Equipment 30,800 3 01/01/2020 154,000 Equipment Cash 154.000 4 12/31/2020 30,800 Depreciation expense Accumulated depreciation Equipment 30.800 5 12/31/2020 11,700 Impairment loss Equipment >> 11,700 6 12/31/2020 No journal entry required 7 12/31/2021 31,500 Depreciation expense Accumulated depreciation Equipment 31,500 X 3 8 > 12/31/2021 28,500 Depreciation expense Accumulated depreciation Equipment 30,800 X No Date General Journal Debit Credit 1 12/31/2020 Impairment loss Equipment N 2 12/31/2021 Retained earnings Equipment 3 12/31/2021 2,900 Accumulated depreciation Equipment Depreciation expense 2.900