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. Your answer is correct. 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. Your answer is partially correct. 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.) Date Account Titles and Explanation Debit Credit December 31, 2020 Loss on Impairment 1200000 Accumulated Impairment Losses - Equipment 1200000 December 31, 2021 Depreciation Expense 300000 Accumulated Depreciation - Equipment 300000 December 31, 2021 Accumulated Impairment Losses - Equipment 240000 Recovery of Loss from Impairment 240000