Patel Industries has a noncontributory, defined benefit pension plan. Since the inception of the plan, the actuary has used as the discount rate the rate on high-quality corporate bonds, which recently has been 8%. During 2021, changing economic conditions caused the rate to change to 7%, and the actuary decided that 7% is the appropriate rate. Required: 1. Does the change in discount rate create a gain, or does it create a loss for Patel under U.S. GAAP? 2. Assume the magnitude of the change is $13.1 million. Prepare the appropriate journal entry to record any 2021 gain or loss under U.S. GAAP. If Patel prepares its financial statements according to U.S. GAAP, how will the company report the gain or loss? 3. If Patel prepares its financial statements according to International Financial Reporting Standards (IFRS), how will the company report the gain or loss assuming the magnitude of the change is $13.1 million? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Does the change in discount rate create a gain, or does it create a loss for Patel under U.S. GAAP? A decrease in the discount rate from 8% to 7% projected benefit obligation. When the obligation reported as a it is Journal entry worksheet Record gain or loss under U.S. GAAP. Note: Enter debits before credits. Event General Jounral Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 Record gain or loss under IFRS. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal