What journal entry should Pluto record

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Question - Pluto limited has machinery it uses to produce fish sticks. At year end, the machine had a carrying amount of $325,000. A recent study found however that eating fish sticks is bad for one's health. Consequently, consumer demand for fish stick is expected to fall drastically. As of year-end, future cash follows anticipated from the machinery are $295,000 (undiscounted) and $209,000 (discounted). The fair market value of the machinery is currently 220,000, and the anticipated disposal cost that Pluto will incur if the machinery is sold is $10,000.

Required -

1 - Based on the information above, what journal entry, if any should Pluto record at year end if it follows ASPE?

2 - Based on the information above, what journal entry, if any, should Pluto record at year end if it follows IFRS?

Reference no: EM132798121

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