Your answer is correct.

Assume that Pearl is a private company that follows ASPE.

Prepare the journal entry at December $31,2023,$ to record asset impairment, if any.

Prepare the journal entry to record depreciation expense for $2024.$

The equipment's fair value at December $31,2024,$ is $$6\mathrm{.}37$ 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 $0$ for the

amounts. List all debit entries before credit entries.$)$

No$.$

Date

Account Titles and Explanation

Debit

$(1)$

December $31,2023$

Loss on Impairment

$1764000$

Accumulated Impairment Losses $-$ Equipmen

$(2)$ December

$31,2024$

Depreciation Expense

Accumulated Depreciation $-$ Equipment

$(3)$ December

$31,2024$

No Entry

eTextbook and MediaThe information that follows relates to equipment owned by Pearl Limited at December $31,2023$:

Assume that Pearl will continue to use this asset in the future. As at December $31,2023,$ the equipment has a

remaining useful life of four years. Pearl uses the straight$-$line method of depreciation.Repeat the requirements in part $($a$)$ above assuming that Pearl 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 $0$ for the amounts. List all

debit entries before credit entries.$)$

No$.$

Date

Account Titles and Explanation

Debit

$(1)$

December $31,2023$

Loss on Impairment

Accumulated Impairment Losses $-$ Equipmen

$(2)$

December $31,2024$

Depreciation Expense

Accumulated Depreciation $-$ Equipment

$(3)$

December $31,2024$

Accumulated Impairment Losses $-$ Equipment

Recovery of Loss from Impairment