X Corporation is a manufacturer of motorcycle parts. Its assets include specialized equipment that is being used in the finishing stage of its manufacturing process. The equipment was bought on January 1, 2017, for $1,540,000, had a ll-year life, and was being depreciated using the straight-line method. By December 31, 2018, the book (carrying) value was $860,000 (after depreciation expense was recorded). However, at that time, X became aware of new technology that would make the equipment obsolete within the next four years. An expert put the cquipment's future undiscounted net cash inflow potential at $210,000 per year (for 4 years) and its fair value at $610,000. Disposal costs would be $10,000. While considering its options for the eventual replacement, X will continue using the equipment. Required: a) Prepare the journal entry, if any, to record the impairment loss at December 31, 2018. Show all calculations. Use the cost recovery method. b) Prepare the journal entries to record 2019 depreciation, using the cost recovery method. c) Assume that at December 31, 2020, the company found out that the new technology that would make the equipment obsolete turned out to be unreliable and not financially feasible for the industry. Therefore, the original accounting estimates for the equipment was not relevant. Record depreciation for 2020 and any other adjusting entries required. d) Ignore (a) to (c). Now assume that the company uses the rational entity model. Calculate the amount of impairment, if any, at December, 2018. (e) and (f) located on next page.... c) Record depreciation for 2019 using the rational entity model