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

At December $31,2023,$ Pearl 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 $$46,000.$

Your answer is partially correct.

Assume that Pearl 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 O for the amounts. List all debit

entries before credit entries.$)$

Prepare the journal entry at December $31,2023,$ to record asset impairment, if any.

Prepare the journal entry to record depreciation expense for $2024.$

Assume that the asset was not sold by December $31,2024.$ The equipment's fair value $($and recoverable amount$)$ on this

date is $$5\mathrm{.}98$ million. Prepare the journal entry, if any, to record the increase in fair value. It is expected that the costs of

disposal will total $$46,000.$

No$.$ Account Titles and Explanation

$(1)$

Loss on Impairment

$(2)$

$(3)$