Use the same information from E12- 1 but now assume that Henne Optical Corporation is an IFRS reporter. Henne Optical€™s discount rate is 5% and costs to sell any equipment are zero.
In E12-1

Required
a. Determine the asset group for purposes of impairment testing and justify your decision.
b. Compute the impairment loss for the asset group identified in (a) for the current year, if any.
c. Prepare the journal entry to record the impairment loss, if needed.

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Description Factory building (used in several segments) Less: Accumulated dapreciation Net book value Carrying Value $10,000,000 Estimated Fair Value 4,500,000) S 5.500000 S 8900,000 Land s 7000,000 S14,000,000 2,100,000 Lens manufacturing equipment Less: Accumulated depreciation Net book value (600,000) S 1,500,000 S 1.100,000 Lens polishing equipment Less: Accumulated depreciation Net book value $ 3.000,000 1.200,000) $1,800,000 S 1,625,000 General factory equipment (used in several segments) Less: Accumulated depreciation Net book value S 6,500,000 (4,000,000) $ 2,500,000 S 2,400,000 Delivery trucks (used in several segmentsi Less: Accumulated depreciation Net book value $ 1,750,000 (300,000) $ 1,450,000 S 1.125,000 Total net fixed assets $19.750,000