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The information that follows relates to equipment owned by Sweet Acacia Limited at...

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Accounting

The information that follows relates to equipment owned by Sweet Acacia Limited at December 31,2023 :
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.
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 $7.15 million. Prepare the journal entry, if any, to record the
increase in fair value.
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