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.

The equipment was purchased in 2020 and is being depreciated using the units-of-production method. By December 31, 2021, the book (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 fair value at $300,000. While considering its options for the eventual replacement, Rhino will continue using the equipment, but will change to straight-line depreciation.

Assuming Rhino is a private Canadian corporation,

a) I would like the journal entry, if any, to record the impairment loss at December 31, 2021.

b) I would like the journal entries to record 2022 and 2023 depreciation.