100 Question no. 1 Presented below is information related to equipment owned by Porto Company at December 31, 2017. Cost Accumulated depreciation to date Expected future net cash flows Fair value $5,600,000 640,000 4,000,000 (undiscounted) 2,720,000 Assume that Porto will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. a) Has the asset been impaired? How do you know? Show your workings. b) Prepare the journal entry (if any) to record the impairment of the asset, if any, at December 31, 2017.