Problem $11-26($Static$)($LO $11-9)$

Parnell Company acquired construction equipment on January $1,2020,$ at a cost of $$78,400.$ The equipment was expected to have a useful life of six years and a residual value of $$10,000$ and is being depreciated on a straight$-$line basis. On January $1,2021,$ the equipment was appraised and determined to have a fair value of $$74,500,$ a salvage value of $$10,000,$ and a remaining useful life of five years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in IAS $16.$

Assume that Parnell Company is a U$.$S$.-$based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U$.$S$.$ GAAP to IFRS must be made. Ignore income taxes.

Required:

a$.$ Prepare journal entries for this equipment for the years ending December $31,2020,$ and December $31,2021,$ under $(1)$ U$.$S$.$ GAAP and $(2)$ IFRS.

b$.$ Prepare the entry$($ies$)$ that Parnell would make on the December $31,2021,$ conversion worksheet to convert U$.$S$.$ GAAP balances to IFRS.

Prepare journal entries for this equipment for the years ending December $31,2020,$ and December $31,2021,$ under $(1)$ U$.$S$.$ GAAP and $(2)$ IFRS. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$\backslash$table$[[$No$,$Date,General Journal,,Debit,Credit$],[1,01/01/2020,$Depreciation expense,$ox,11,400,],[,$Accumulated depreciation$-$Equipment,$x,,11,400$