Question #4 Gethsemane Silos Ltd. (GSL) is a private company. GSL purchased $302,000 of equipment on January 1, 2022. Its accumulated amortization at December 31, 2023 is $81,200. GSL intends to continue using this capital asset. New circumstances arise on December 31, 2023 suggest that this equipment may be impaired. Future net cash flows from the use of this asset are expected to be $40,000 in 2024, $ 30,000 in 2025, and $20,000 in 2026. The equipment is expected to have a residual value of $41,000 at the end of its useful life, which is expected to be December 31, 2026. An equipment specialist has determined that the fair value of hits equipment at December 31, 2023 is $93,000. PPC amortizes this asset on the straight-line basis. 8% interest rate is used to discount the cash flow which approximates the value in use. Required:

1. Determine if the carrying value of the equipment is recoverable as od December 31, 2023.

2. Prepare Journal entry(ies) to record the impairment on the equipment on December 31, 2023.

3. How would your answer change if GSL is a public company? Please show your calculations and do it in order. Hint: Question is about Impairment, thank you so much