Problems 26-30 assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to

Problems 26-30 assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes for each problem. rsch Company acquired equipment at the beginning of 2017 at a cost of $135,000. The equip­ment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2017, rsch compiled the following information related to this equipment: a. Determine the appropriate accounting for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS. b. Prepare the entry(ies) that rsch would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2018. Transcribed Image Text: Expected future cash flows from use of the equipment
Present value of expected future cash flows from use of the equipment
Fair value (selling price less costs to dispose). .
$116,000
100,000
96,600

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