Rhino Corporation is a manufacturer of automobile parts. Its capital assets include specialized equipment that is being used in the finishing stage of its manufacturing process. On December 31, 2022, the carrying value was $430,000 (after depreciation expense had been recorded). However, at that time, Rhino became aware of new technology that would make the equipment obsolete within the next five years. An appraisal puts the equipment's future undiscounted net cash flows at $390,000, and its discounted cash flows and fair value both at $300,000. No costs would be incurred to sell the equipment. Rhino uses IFRS and the straight-line depreciation method.

On December 31, 2024, Polar Inc. offered to buy the equipment from Rhino for $260,000. At this time Rhino assessed the undiscounted future cash flows at $250,000 and discounted future cash flows at $218,100. Prepare the following journal entries.

a) to record the impairment loss at December 31, 2022a) to record the impairment loss at December 31, 2022a) to record the impairment loss at December 31, 2022

b) to record 2023 depreciation

c) to record or reverse impairment loss, if any, at December 31, 2022