The information that follows relates to equipment owned by Headlands Limited at December $31,2023$:

Cost

Accumulated depreciation to date

Expected future net cash flows $($undiscounted$)$

Expected future net cash flows $($discounted$,$ value in use$)$

Fair value

Costs to sell $($costs of disposal$)$

$$4\mathrm{.}590\mathrm{.}000$

$510,000$

$3,570,000$

$3\mathrm{.}238\mathrm{.}500$

$3,162,000$

$25,500$

Assume that Headlands will continue to use this asset in the future. As at December $31,2023,$ the equipment has a remaining useful life of four years. Headlands uses the straight$-$line method of depreciation. Assume that Headlands is a public company that follows IFRS.

Prepare the journal entry at December $31,2023,$ to record asset impairment, if any. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.$)$

Date

December

$31,2023$

Account Titles and Explanation

Debit

Credit

Prepare the journal entry to record depreciation expense for $2024.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.$)$

No$.$

$(2)$

Dara

December

$31.2024$

Account Titles and Explanation

Debit

Credit

The equipment's fair value at December $31,2024,$ is $$3\mathrm{.}32$ million. Prepare the journal entry, if any, to record the increase in fair value. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select

$"$No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.$)$

Date

December

$31,2024$

Account Titles and Explanation

Debit

Credit