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 6%. During 2018, changing economic conditions caused the rate to change to 5%, and the actuary decided that 5% 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 $13.9 million. Prepare the appropriate journal entry to record any 2018 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, how will the company report the gain or loss assuming the magnitude of the change is $13.9 million? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the magnitude of the change is $13.90 million. Prepare the appropriate journal entry to record any 2018 gain or los GAAP. If Patel prepares its financial statements according to U.S. GAAP, how will the company report the gain or loss? (If nc required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 1 > Record gain or loss under U.S. GAAP. Note: Enter debits before credits. Journal entry worksheet 1 Record gain or loss under IFRS. Note: Enter debits before credits. General Journal Debit Credit Event 1 Record entry Clear entry View general journal