Use the same information from E12- 1 except now assume the following cash flow projections:
In E12-1

Future Period Cash Flow Projection
Year 1 €¦€¦€¦€¦€¦€¦€¦.$ 1,450,000
Year 2 €¦€¦€¦€¦€¦€¦€¦. 850,000
Year 3 €¦€¦€¦€¦€¦€¦€¦. 400,000
Year 4 €¦€¦€¦€¦€¦€¦€¦. 400,000
Year 5 €¦€¦€¦€¦€¦€¦€¦. 250,000
Total $ 3,350,000
Required
a. Compute the impairment loss for the current year, if any.
b. Prepare the journal entry to record the impairment loss, if needed.

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Description Factory building (used in several segments) Less: Accumulated depreciation Net book value Camying Vl Estimated Fair Value $10,000,000 4,500,000) $5,500,000 S 8900,000 Land 2000,000 S14,000,000 Lens manufacturing equipment Less: Accumulated depreciation Net book value S 2.100,000 (600,000 1,500,000 1,100,000 Lens polishing equipment Less: Accumulated depreciation Net book value $ 3,000,000 (1,200,000) $1,800,000 s 1,625,000 General factory equipment (used in several segments) Less: Accumulated depreciation Net book value $ 6,500,000 4,000,000) 2,500,000 S 2,400,000 Delivery trucks (used in several segments) Less: Accumulated depreciation Net book value $ 1,750,000 300,000) 1.450,000 $ 1.125,000 Total net fixed assets $19.750.000