Hirsch Company acquired equipment at the beginning of 2020 at a cost of $135,000. 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	$	116,400
Present value of expected future cash flows from use of the equipment		101,400
Fair value (selling price less costs to dispose)		97,030

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:

1. 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.

No Date General Journal Debit Credit 1 12/31/2020 6,600 Impairment loss Equipment 6,600 2 12/31/2021 25,350 Retained earnings Equipment 25,350 3 12/31/2021 25,350 Accumulated depreciation Equipment Depreciation expense 27,000