Question

Show transcribed image text Consider the following independent situations for Pronghorn Corporation. Pronghorn applies ASPE. Situation 1: Pronghorn purchased equipment in 2010 for $171,600 and estimated a $11,600 residual value at the end of the equipment's 10-year useful life. At December 31, 2016, there was帛112,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2017, the equipment was sold for $42,300 Situation 2: Pronghorn sold a piece of machinery for $9,390 on July 31, 2017. The machine originally cost $36,560 on January 1, 2009. It was estimated that the machine would have a useful life of 12 years with a residual value of 2,000, and the straight-line method of depreciation was used. Situation 3: Pronghorn sold equipment that had a carrying amount of $4,400 for $6,200. The equipment originally cost $11,400 and it is estimated that it would cost $15,400 to replace the equipment. Prepare the appropriate journal entries to record the disposition of the property, plant, and equipment assets, assuming that Pronghorn's fiscal year end is December 31 and that Pronghorn only prepares financial statements and adjusts the accounts annually. (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 o for the amounts. Do not round intermediate calculations.) Account Titles and Explanation Debit Credit Situation 1: To record depreciation on Equipment) To record the disposal of Equipment) Situation 2: (To record depreciation on Machinery) (To record the disposal of Machinery) Situation 3: question: How would the journal entries in (a) change if Novak Corporation applied IFRS

Answer 1