On January 1, 2014, Clark Inc. sold a piece of equipment to Daye Ltd. for $200,000, and immediately leased it back. At the time, the equipment was carried on Clark's books at a cost of $300,000, less accumulated depreciation of $120,000. The lease is a finance or capital lease to Clark, with a lease term of five years. The equipment under finance or capital lease will be depreciated in Clark's books over five years using double-declining balance depreciation.
(a) Calculate the amortization of the deferred gain on sale to be recorded at the end of 2014, if Clark follows IFRS.
(b) Calculate the amortization of the deferred gain on sale to be recorded at the end of 2014, if Clark follows ASPE.