Please solve Problem a& b

The Fans Corporation has determined that there may be indicators of impairment tor one of their assets an ofce building that is currently leased out and a cash generating unit (CGU) representing a business unit. Data for the building and CGU follow. The year end is December 31, 20x4. Building CGU Carrying value (20 years remaining, $500,000 residual value) Fair value Costs to sell Future cash ows generated by building (each year to the end of its useful life) Carrying Value Land $ 1,000,000 Building 2,400,000 Equipment 900,000 Goodwill 1,000,000 $5,300,000 32.800.000 2,100,000 6% of fair value $170,000 Fair Value less Costs to Sell $ 1,650,000 1,700,000 550,000 $3,900,000 The CGU's cash ows are expected to be equal to $500,000 for the next ve years with a residual value of $2,500,000 at the end of ve years. Assume a discount rate of 5%. Required a) Calculate the amount of impairment loss (if any) for the building and CGU under the assumption that Faris is: i) a publicly accountable entity. Allocate the impairment loss (if any) to the assets of the CGU. ii) a private company subject to ASPE. Just calculate the impairment loss. b) Assume that on December 31, 20x6, the recoverable amount of the building is estimated to be $2,700,000. Calculate the amount of impairment loss reversal on the building at December 31, 20x6. Assume the company is a publicly accountable entity