Part 1: Roland Company uses special strapping equipment in its packaging business. The equipment was purchased on January 1, 2019 for $10,000,000 and had an estimated useful life of 8 years with no salvage value. Roland paid cash at the time of purchase and uses straight-line depreciation.

On December 31, 2020, new technology was introduced that would accelerate the obsolescence of Rolands equipment. Roland estimates that future net cash flows on the equipment will be $6,300,000 and the fair value of the equipment to be $5,600,000. For 2021 and onward, Roland adjusted the useful life of the equipment down to a total of 7 years.

Prepare all journal entries relating to the equipment for Roland Company on the dates listed.

Date	Account	Debit	Credit
01/01/2019
12/31/2019
12/31/2020
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
12/31/2025

Part 2:

What is the book value of the equipment on January 1, 2025?

$

Part 3: This part is independent and unrelated to parts 1 and 2. Suppose that in January 2021, the projected future cash flows are $8,300,000 and the fair value of this equipment increased to $5,900,000. Prepare the journal entry, if necessary, to account for this fair value increase, assuming:

1. Roland continues to use the equipment in operations.
2. Roland decides to sell the equipment; thus, the equipment has been marked for sale.
3. Roland continues to use the equipment in operations, but instead of reporting under GAAP, Roland reports under IFRS.

Date	Account	Debit	Credit
(a)
12/31/2021
(b)
12/31/2021
(c)
12/31/2021