The information that follows relates to equipment owned by Sweet Acacia Limited at December 31, 2020:

Cost		$7,200,000
Accumulated depreciation to date		800,000
Expected future net cash flows (undiscounted)		5,600,000
Expected future net cash flows (discounted, value in use)		5,080,000
Fair value		4,960,000
Costs to sell (costs of disposal)		40,000

Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2020, the equipment has a remaining useful life of four years. Sweet Acacia uses the straight-line method of depreciation.

Assume that Sweet Acacia is a private company that follows ASPE. 1. Prepare the journal entry at December 31, 2020, to record asset impairment, if any. 2. Prepare the journal entry to record depreciation expense for 2021. 3. The equipment's fair value at December 31, 2021 is $5.20 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.) Debit Credit No. Date Account Titles and Explanation (1) December 31, 2020 (2) December 31, 2021 (3) December 31, 2021 SHOW LIST OF ACCOUNTS Repeat the requirements in (a) above assuming that Sweet Acacia 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.) Debit Credit No. Date Account Titles and Explanation (1) December 31, 2020 (2) December 31, 2021 (3) December 31, 2021