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 Present value of expected future cash flows from use of the equipment Fair value (selling price less costs to dispose) $ 116,000 100,000 96,600 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 Debit Credit 1 01/01/2020 135,000 Equipment Cash 135,000 2 12/31/2020 27,000 Depreciation expense Accumulated depreciation - Equipment 27,000 3 01/01/2020 135,000 Equipment Cash 135,000 4 12/31/2020 27,000 Depreciation expense Accumulated depreciation - Equipment 27,000 5 12/31/2020 8,000 Impairment loss Equipment 8,000 6 12/31/2020 No journal entry required 7 12/31/2021 8,000 Depreciation expense Accumulated depreciation - Equipment 8,000 8 12/31/2021 25,000 Depreciation expense Accumulated depreciation - Equipment 25,000 u. Piepale uie encycles, Lidl ISCII would make on le vecember 31, 2020, anu December 31, 2021, CONVERSION WOIK convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2021. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the entry(ies) that Hirsch would make on the December 31, 2020, and December 31, 2021, conversion worksheets convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). General Journal Debit Credit No 1 Date 12/31/2020 Equipment Cash 2 12/31/2021 Impairment loss Equipment 3 12/31/2021 x Depreciation expense Accumulated depreciation - Equipment