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

Cost $11,160,000 Accumulated depreciation to date 1,240,000 Expected future net cash flows (undiscounted) 8,680,000 Expected future net cash flows (discounted, value in use) 7,874,000 Fair value 7,688,000 Costs to sell (costs of disposal) 62,000 Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Sweet Acacia uses the straight-line method of depreciation. a) Assume that Sweet Acacia 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 $8.06 million. Prepare the journal entry, if any, to record the increase in fair value.