1) Question 1)

Wesley company has a Cash Generating Unit (CGU) that it decided to test for impairment on December 31, 2020. The following information was collected (depreciation was recorded in 2020): Carrying value Fair value Costs to sell Value-in- use Goodwill $10,000 ---- ---- ---- Equipment 45,000 $50,000 $1,000 ---- Building 54,000 $52,000 Land 37,000 Total for the CGU $146,000 $130,000 $5,000 $123,000 The building was acquired on January 1, 2019 for $62,800. Its residual value is $10,000 and total useful life is 12 years at that time. Depreciation was recorded in 2019 and 2020 using the straight- line method. On December 31, 2021, the following information was collected on the building: Fair value $48,000 Costs to sell 500 Value-in-Use 49,000 Required- 1) Calculate and record the impairment loss on the Cash Generating Unit on December 31, 2020