Quebec Pulp and Paper (QPP) has plant and equipment that has been evaluated for impairment periodically in response to changing conditions of die industry. The plant and equipment together form a cash generating unit. They were purchased in 2011 for $150 million (plant) and $84 million (equipment). As of the acquisition date, the plant had an estimated useful life of 25 years; the equipment, 12 years. QPP uses the straight-line depreciation method and recorded a full year of depreciation in the year of acquisition. The company has a December 31 year-end.
At the beginning of 2016, QPP wrote down the plant and equipment for impairment due to the decline in prices of newsprint and other paper products. The recoverable amount of the plant was estimated to be $110 million; the equipment, $42 million.
Prices of paper products later recovered. At the beginning of 2019, the company re-evaluated the impairment of its plant and equipment. The new recoverable amounts were $105 million for the plant and $25 million for the equipment.
Required:
a. Determine the amount of depreciation for 2011 to 2015.
b. Determine the amount of impairment loss for 2016.
c. Determine the amount of depreciation for 2016 to 2018.
d. Determine the amount of impairment loss for 2019.
e. Determine the amount of depreciation for 2019.