Machinery:

The company acquired a new machine on January 1, 2013, with an estimated useful life of 20 years for $200,000. The machine has an electrical motor that must be replaced every 5-years at an estimated cost of $40,000. Continue operation of the machine requires an inspection every 4-years after purchases; the inspection cost is $20,000. The company uses the straight-line non-component method of depreciation.

REQUIRED: Prepare a complete and professional report where you should provide reconciliation schedules to convert 2014 income and and December 31, 2014 stockholders' equity from U.S. GAAP bases to IFRS. Please explain each adjustment made in the reconciliation schedules for this machine.