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

Cost		$9,720,000
Accumulated depreciation to date		1,080,000
Expected future net cash flows (undiscounted)		7,560,000
Expected future net cash flows (discounted, value in use)		6,858,000
Fair value		6,696,000
Costs to sell (costs of disposal)		54,000

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

Assume that Waterway 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 equipments fair value at December 31, 2021 is $7.02 million. Prepare the journal entry, if any, to record the increase in fair value.

No.	Date	Account Titles and Explanation	Debit	Credit
(1)	December 31, 2020	Loss on Impairment	1,944,000
		Accumulated impairment		1,944,000
(2)	December 31, 2021	Depreciation expense	1,674,000
		Accumulated depreciation		1,674,000
(3)	December 31, 2021	No entry	0
		No entry		0

Repeat the requirements in (a) above assuming that Waterway is a public company that follows IFRS.

No.	Date	Account Titles and Explanation	Debit	Credit
(1)	December 31, 2020	Loss on impairment	1,782,000
		accumulated impairment		1,782,000
(2)	December 31, 2021	depreciation expense	1,714,500
		accumulated depreciation		1,714,500
(3)	December 31, 2021

Please, answer 3.