At December 31, Year 5, Aaron Co. had the following property, plant, and equipment: Asset Fair Value Cost to Sell Present Value of All Cash Flows Expected from the Asset Sum of All Undiscounted Cash Flows Expected from the Asset Useful Life from the Acquisition Date (Depreciation Method) Residual Value Equipment $220,000 $5,000 $230,000 $255,000 6 years (Straight Line) $0 Machine set   310,000   8,000   320,000   335,000   4 years (SYD)   0 Land   660,000   9,000   600,000   640,000     Determine the impairment losses recognized for Year 5 under U.S. GAAP and IFRS. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive numbers. If the correct answer is zero, enter a zero (0). Purchase Receipt 3 - Land Purchase Date: 1/1/Year 3 Purchase Amount: $650,000 Purchase Receipt 2 - Machine Set Purchase Date: 1/1/Year 5 Purchase Amount: $600,000 Purchase Receipt 1 - Equipment Purchase Date: 7/1/Year 2 Purchase Amount: $600,000

Question

At December 31, Year 5, Aaron Co. had the following property, plant, and equipment:

Asset Fair Value Cost to Sell Present Value of All Cash Flows Expected from the Asset Sum of All Undiscounted Cash Flows Expected from the Asset Useful Life from the Acquisition Date (Depreciation Method) Residual Value
Equipment $220,000 $5,000 $230,000 $255,000 6 years (Straight Line) $0
Machine set   310,000   8,000   320,000   335,000   4 years (SYD)   0
Land   660,000   9,000   600,000   640,000    

Determine the impairment losses recognized for Year 5 under U.S. GAAP and IFRS. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive numbers. If the correct answer is zero, enter a zero (0).

Purchase Receipt 3 - Land

Purchase Date: 1/1/Year 3

Purchase Amount: $650,000

Purchase Receipt 2 - Machine Set

Purchase Date: 1/1/Year 5

Purchase Amount: $600,000

Purchase Receipt 1 - Equipment

Purchase Date: 7/1/Year 2

Purchase Amount: $600,000

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