The information that follows relates to equipment owned by Pearl Limited at December 31, 2023: Cost $7,560,000 Accumulated depreciation to date 840,000 Expected future net cash flows (undiscounted) 5,880,000 Expected future net cash flows (discounted, value in use) 5,334,000 Fair value 5,208,000 Costs to sell (costs of disposal) 42,000 Assume that Pearl will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Pearl uses the straight-line method of depreciation. (a) Your answer is correct. Assume that Pearl is a private company that follows ASPE. 1. Prepare the journal entry at December 31, 2023, to record asset impairment, if any. 2. Prepare the journal entry to record depreciation expense for 2024. 3. The equipment's fair value at December 31, 2024, is $5.46 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 all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit December Loss on Impairment 1512000 31, 2023 Accumulated Impairment Losses - Equipment 1512000 December 1302000 31, 2024 Depreciation Expense Accumulated Depreciation - Equipment 1302000 December 31, 2024 No Entry No Entry eTextbook and Media List of Accounts Attempts: 7 of 15 used (b) Your answer is partially correct. Repeat the requirements in part (a) above assuming that Pearl is a public company that follows IFRS. (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 all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit December 31, 2023 Loss on Impairment 1386000 Accumulated Impairment Losses - Equipment 1386000 December 31, 2024 Depreciation Expense 1333500 Accumulated Depreciation - Equipment 1333500 December 31, 2024 Accumulated Impairment Losses - Equipment 134000 Recovery of Loss from Impairment 1134000 eTextbook and Media List of Accounts Save for Later Attempts: 5 of 15 used Submit