On January 1, 2019, Company X has an asset with a cost of $300,000 and accumulated

depreciation of $120,000. Estimated future cash inflows are $150,000 and the fair value

is $125,000. There is a 5-year remaining life and the company uses straight-line

depreciation. The asset will continue to be used in operations. At the beginning of

2020, Company X determines the fair value of the asset to be $160,000. Prepare entries

for 2019 and 2020.

IFRS: Assume the same facts except that Company X uses IFRS. Prepare the necessary

journal entries for 2019 and 2020.