Prepare the required journal entries to record any adjustments. $($List all debit entries before credit entries. Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts.$)$

No$.$ Account Titles and Explanation

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Credit

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No Entry

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$1$It is December $2023$ and Crane Inc. recently hired a new accountant, Jodie Larson. Although Crane is a private company, it follows

IFRS. As part of her preparation of the $2023$ financial statements for Crane, Jodie has proposed the following accounting changes:

At December $31,2022,$ Crane had a receivable of $$245,000$ from Michael Inc. on its statement of financial position that had

been outstanding since mid$-2021.$ In December $2023,$ Michael was declared bankrupt and no recovery is expected. Jodie

proposes to write off the receivable in $2023$ against retained earnings to correct a $2021$ error.

Jodie proposes to change from double$-$declining$-$balance to straight$-$line depreciation for the company's manufacturing

assets because of a change in the pattern in which the assets provide benefits to the company. If straight$-$line depreciation

had been used for all prior periods, retained earnings would have been $$373,184$ higher at December $31,2022.$ The change's

effect just on $2023$ income is a $$47,824$ reduction.

For equipment in the leasing division, Jodie proposes to adopt the sum$-$of$-$the$-$years'$-$digits depreciation method, which the

company has never used before. Crane began operating its leasing division in $2023.$ If straight$-$line depreciation were to be

used, $2023$ income would be $$107,800$ higher.

Crane has decided to adopt the revaluation method for reporting and measuring its land, with this policy being effective from

January $1,2023.$ At December $31,2022,$ the land's fair value was $$882,000.$ The land's book value at December $31,2022,$ was

$$735,000.($Hint: Refer to IAS $8$ for the treatment of this specific change in policy.$)$

Crane has investments that are recorded at fair value through other comprehensive income $($FV$-$OCl$).$ At December $31,2022,$

an error was made in the calculation of the fair values of these investments. The amount of the error was an overstatement of

the fair value by $$196,000.$

Crane's income tax rate is $30\%.$