Hambrecht Corp. is preparing its financial statements for the fiscal year ending November 30, 2017. Certain specialized equipment was scrapped on January 1, 2018. At November 30, 2017, this equipment was being used in production by Hambrecht and had a carrying amount of $1 million. As at November 30, 2017, it was estimated that the asset has undiscounted net future cash flows of $1.1 million, value in use of $800,000, and fair value less costs of disposal of $50,000 (scrap value).
(a) If Hambrecht prepares financial statements in accordance with IFRS, what is the recoverable amount of the equipment at November 30, 2017?
(b) If Hambrecht prepares financial statements in accordance with ASPE, what is the recoverable amount of the equipment at November 30, 2017?