Question 4 (17 marks) 1. The company purchased the equipment on October 1, 20x1 for $100,000, and estimated that the equipment will use for 5 years and has a residual value of $2,000. The equipment has the following capacity: 10,000 service hours. December 31 is the reporting date. The equipment provided 700 and 2,300 service hours in 20X1 and 20x2, respectively. Required (6 marks): Calculate depreciation expense for 20X1 and 20X2 using different methods in the following table Straight-line Double-declining- Activity method balance 20X1 20X2 2. The company provided the data of PP&E in a cash-generating unit (CGU) as follows: Cost Accumulated Depreciation Equipment A $ 15.000 $3,000 Equipment B 30,000 19,000 Equipment C 45,000 23,000 11 The unit's fair value less costs to sell was $25,000. The unit's future cash flows was $32,000, and its present value was $28,000. The company adopted IFRS. Required (11 marks): (1) Prepare journal entries to record impairment. 2) If the recoverable amount of Equipment C is $19,000, prepare joumal entries to record impairment. (3) If the recoverable amount of Equipment C is $24,000, prepare joumal entries to record impairment