The information that follows relates to equipment owned by Headlands Limited at December 31, 2020: 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 disposall $8,460,000 940,000 6,580,000 5,969,000 5,828,000 47,000 At December 31, 2020, Headlands discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It is expected that the costs of disposal will total $47.000. Your answer is partially correct. Assume that Headlands is a private company that follows ASPE. (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 for the amounts.) 1. 2. 3. Prepare the journal entry at December 31, 2020, to record asset impairment, if any. Prepare the journal entry to record depreciation expense for 2021. Assume that the asset was not sold by December 31, 2021. The equipment's fair value and recoverable amount) on this date is $6.11 million. Prepare the journal entry, if any, to record the increase in fair value. It is expected that the costs of disposal will total $47,000. Debit Credit No. Account Titles and Explanation Loss on Impairment 1692000 Accumulated Impairment Losses - Equipment 1692000 (2) Depreciation Expense 1457000 Accumulated Depreciation - Equipment 1457000 (3) No Entry No Entry Your answer is partially correct. Repeat the requirements in (a) above assuming that Headlands is a public company that follows IFRS, and that the asset meets all criteria for classification as an asset held for sale. (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 for the amounts.) Debit Credit (1) Account Titles and Explanation Loss on Impairment Accumulated Impairment Losses - Equipment 1551000 1551000 (2) Depreciation Expense 940000 Accumulated Depreciation - Equipment 940000 (3) Accumulated Impairment Losses - Equipment 564000 Recovery of Loss from Impairment 564000