Kilo Pascal is a maker of instruments for measuring weight, temperature, pressure, and so on. Due to the increasing use of digital instruments, one of the company production lines based on analogue technology is potentially impaired. Management has produced the following information relating to this production line:

Required:
Determine whether the production line is impaired, and if so, the amount of the impairment.

Original cost Accumulated depreciation Fair value Costs to sell Incremental cash flow 2011 Incremental cash flow 2012 Incremental cash flow 2013 Incremental cash flow 2014 Incremental cash flow 2015 and later Risk-adjusted cost of capital $7,000,000 4,300,000 3,200,000 145,000 800,000 900,000 900,000 1,000,000 10%