Please help with red boxes

On January 1, 2014, Borstad Company purchased equipment for $1,150,000. It is depreciating the equipment over 25 years using the straight-line method and a zero residual value. Late in 2019, because of technological changes in the industry and reduced selling prices for its products, Borstad believes that its equipment may be impaired and will have a remaining useful life of 8 years. Borstad estimates that the equipment will produce cash inflows of $390,000 and will incur cash outflows of $281,000 each year for the next 8 years. It is not able to determine the fair value of the equipment based on a current selling price. Borstads discount rate is 14%.

	Required:
1.	Prepare schedules to determine whether, at the end of 2019, the equipment is impaired and, if so, the impairment loss to be recognized.
2.	Prepare the journal entry to record the impairment.
3.	Next Level How would your answer to Requirement 1 change if the discount rate was 18% and the cash flows were expected to continue for 6 years?
4.	Next Level How would your answer change if management planned to implement efficiencies that would save $11,000 each year?
5.	Refer to Requirement 1 and assume that the company uses IFRS. It determines that the fair value of the equipment is $554,000 and estimates that it would cost $13,000 to sell the equipment. How much would the company recognize as the impairment loss?

3. How would your answer to Requivement 1 change if the discount rate was 18% and the cash flows were expected to continue for 6 years? Additional instruction Borstad Company would recognize a loss o If the discount rate was 18% and the cash flows were expected to continue for 6 years. 4. How would your answer change if management planned to implement efficiencies that would save $11,000 each year? Step 1: Complete the Recoverabilty Test below. Step 2: Complete the following statement regarding the Recoverability Test results. The book value is than the undiscounted net cash flows so Borstad recognize an impairment loss at December 31,2019. Adolitional instructions 3. How would your answer to Requivement 1 change if the discount rafe was 18% and the cash flows were expected fo continue for 6 years? Borstad Company would recognize a loss o if the discount rate was 18% and the cash flows were expected to continue for 6 y Points: Feedback Check My Work Compare the book Value to the undiscounted expected cash flows. 4. How would your answer change if management planned to implement efficiencies that would save $11,000 each year? Step 1: Complete the Recoverabity Test below. 3. How would your answer to Requivement 1 change if the discount rafe was 18% and the cash flows were expected fo continue for 6 years? Borstad Company would recognize a loss o if the discount rate was 18% and the cash flows were expected to continue for 6 y Points: Feedback Check My Work Compare the book Value to the undiscounted expected cash flows. 4. How would your answer change if management planned to implement efficiencies that would save $11,000 each year? Step 1: Complete the Recoverabity Test below