Parnell Company acquired construction equipment on January $1,2023,$ at a cost of $$76,000.$ The equipment was expected to

have a useful life of six years and a residual value of $$10,000$ and is being depreciated on a straight$-$line basis. On January $1,$

$2024,$ the equipment was appraised and determined to have a fair value of $$70,200,$ a salvage value of $$10,000,$ and a

remaining useful life of five 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 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 $31,2023,$ and December $31,2024,$ under $(1)$ U$.$S$.$

GAAP and $(2)$ IFRS.

b$.$ Prepare the entry$($ies$)$ that Parnell would make on the December $31,2024,$ conversion worksheet to convert U$.$S$.$ GAAP

balances to IFRS.

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Complete this question by entering your answers in the tabs below.

Prepare journal entries for this equipment for the years ending December $31,2023,$ and December $31,2024,$ under $(1)$ U$.$S$.$

GAAP and $(2)$ IFRS.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Required A