Ramshare Company acquired equipment at the beginning of 2013 at a cost of $245,000. The equipment has a 7-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2013, Ramshare compiled the following information related to this equipment:

Expected future cash flows from use of the equipment	$ 219,600
Present value of expected future cash flows from use of the equipment	200,400
Fair value (net selling price), less costs to dispose	195,300

a.

Determine the amount at which Ramshare should carry this equipment on its December 31, 2013, balance sheet and the amount, if any, that it should report in net income related to this inventory using (1) U.S. GAAP and (2) IFRS. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required.)

b.	Determine the adjustments that Ramshare would make in 2013 and 2014 to reconcile net income and stockholders