Pamell Company acquired construction equipment on January 1, 2020, at a cost of $76,300. The equipment was expected to have a useful life of four years and a residual value of $13,000 and is being depreciated on a straight-line basis. On January 1, 2021, the equipment was appraised and determined to have a fair value of $71,800, a salvage value of $13,000, and a remaining useful life of three years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in IAS 16. Assume that Parnell Company is a US-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 Parnell would make on the December 31, 2021, conversion worksheet to convert U.S. GAAP balances to IFRS e nrst account No Date Debit Credit 1 01/01/2020 General Journal Depreciation expense Accumulated depreciation Equipment 15,825 15,825 2 12/31/2020 Depreciation expense Accumulated depreciation Equipment O 15,825 15,825 3 12/31/2020 Depreciation expense Accumulated depreciation Equipment 15,825 15,825 4 01/01/2021 15,825 Accumulated depreciation-Equipment Equipment Revaluation surplus > 4,500 11,325 5 12/31/2021 Depreciation expense Accumulated depreciation-Equipment 19,600 19,600 Journal entry worksheet 1 2 3 4 5 Record the entry for the surplus on revaluation of equipment due to conversion from U.S. GAAP to IFRS. Note: Enter debits before credits. Debit Credit Date General Journal 01/01/2020 Depreciation expense Accumulated depreciation Equipment 15,825 15,825