Reyes Technologies Ltd. has defined its computer repair division as a cash-generating unit under IFRS. The company reported the following carrying amounts for this division at December 31, 2020:

Computers $55,000 Furniture $27,000 Equipment $13,000 The computer repair division is being assessed for impairment. At December 31, 2020, the division’s value in use is $80,000.

Required:

a. Determine if the computer repair division is impaired, assuming that none of the individual assets has a determinable recoverable amount.

b. Prepare the journal to record the impairment from part (a), if any.

c. Determine if the computer repair division is impaired, assuming that the computers have a fair value less cost to sell of $60,000, but that none of the other assets have a determinable recoverable amount.

d. Repeat part

(c) assuming that the computers’ fair value less cost to sell is $50,000.