Hello,

I would like to get the solution and the answer of this question. I am in a hurry, so quick response will be appreciated. Thank you.

Due to decreased demand because of COVID-19, Ella's Umbrella Company is experiencing significant declines in sales. The company produces its umbrellas from an assembly line. The equipment in this assembly line has not been previously revalued or impaired. The company reports under IFRS. For the year ending December 31, 2010, the controller gathered the following information relating to the assembly line equipment, which is considered to be a cash generating unit: Original cost Accumulated depreciation Fair value Costs to sell Risk adjusted cost of capital $6,379,000 2,400,000 3,247,000 145,000 6% Incremental cash flows for -2011 -2012 -2013 2014 2015 and thereafter $1,100,000 1,000,000 800,000 900,000 0 Required: 1. Determine if an impairment exists (Show your work). IF impairment exists, prepare the related journal entry