1. Under ASPE, determine if there is any impairment and prepare any necessary entry on December 31, 2017.

2. On December 31, 2018, it is estimated that the reporting units fair value has increased to $415 million. Under ASPE, prepare the journal entry, if any, to record the increase in fair value.

3. Under IFRS, determine if there is any impairment and prepare any necessary entry on December 31, 2017.

4. On December 31, 2018, it is estimated that the cash-generating units fair value has increased to $415 million. Under IFRS, prepare the journal entry, if any, to record the increase in fair value.

The following is net asset information for the Dhillon Division of Klaus, Inc.: NET ASSETS as of December 31, 2017 (in millions) Book Value $ 58 Fair Value Excluding Goodwill $ 58 229 229 2,816 Cash Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets 2,623 210 (2,601) $ 519 (2,601) The purpose of the Dhillon Division (also identified as a reporting unit or cash-generating unit) is to develop a nuclear-powered aircraft. If successful, travelling delays that are associated with refuelling could be greatly reduced, and operational efficiency would increase significantly. To date, management has not had much success and is deciding whether a writedown is appropriate at this time. Management has prepared the following estimates for the reporting unit or cash-generating unit: 1. Undiscounted future net cash flows is approximately $415 million. 2. Future value in use is approximately $515 million. 3. Sale of the unit would yleld s354 million and selling costs would total $4 million