Sunflower Company acquired equipment on January 1, 2018 at a cost of $5 million. The asset has a 10-year life, no salvage value, and is depreciated on a straight-line basis. On December 31, 2019 (two years later) after recording the annual depreciation expense, management determines the fair value of the asset to be $6 million. (Ignore income tax effects.) 1. Determine the impact the equipment has on Sunflower Company's income statement for the years 2020, 2021 and 2022 for both U.S. GAAP and IFRS assuming that the company chooses to follow the alternative that allows revaluation for IFRS. (In other words, what is the depreciation expense for both standards for each of those years?) 2. Summarize the difference in income, total assets and total stockholders' equity using the two different sets of accounting rules for the years 2020, 2021 and 2022. (Keep in mind that assets and equity will have the same cumulative effect in order for the balance sheet to balance.) 3. Assume that net income for each year and total stockholders' equity at the end of year using U.S. GAAP was the following: Net Income Total Stockholders' Equity. 2020 2021 2022 $1,900,000 $2,400,000 $1,750,000 $10,000,000 $12,000,000 $13,500,000 Prepare a detailed schedule to reconcile the difference between U.S. GAAP and IFRS for net income and total stockholders' equity for the years 2020, 2021 and 2022