Question
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
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: (d) Roland continues to use the equipment in operations. (e) Roland decides to sell the equipment; thus, the equipment has been marked for sale. (f) Roland continues to use the equipment in operations, but instead of reporting under GAAP, Roland reports under IFRS.
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