Tapatio S$.$A$.$ de C$.$V$.$ acquired a new piece of manufacturing equipment on January $1,2022,$ for a cash price of $500,000$ pesos. The equipment was expected to have a useful life of $10$ years and no residual value, and is being depreciated on a straight$-$line basis. On January $1,2023,$ the equipment was appraised and determined to have a fair value of $540,000$ pesos, zero salvage value, and a remaining useful life of nine years. Tapatio uses the revaluation model in IAS $16$ to measure equipment subsequent to acquisition. Any revaluation surplus will be recycled to retained earnings when the equipment is disposed of$.$

Assume that Tapatio S$.$A$.$ de C$.$V$.$ is a foreign company using IFRS and is owned by a company using U$.$S$.$ GAAP. Thus, IFRS balances must be converted to U$.$S$.$ GAAP to prepare consolidated financial statements. Ignore income taxes.

Required:

a$.$ Prepare journal entries for this equipment for the years ending December $31,2023,$ and December $31,2024,$ under $(1)$ IFRS and $(2)$ U$.$S$.$ GAAP.

b$.$ Prepare the entry$($ies$)$ that the U$.$S$.$ parent would make on the December $31,2023,$ and December $31,2024,$ conversion worksheets to convert IFRS balances to U$.$S$.$ GAAP.

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