1.Staton Corporation's balance sheet includesEquipment recorded at a cost of $110,000 and accumulated depreciation of 20,000. After performing its annual review for impairment, Staton determined the following:

Asset value in use............................................................................ $69,000

Fair value less selling costs............................................................. 67,000

Undiscounted cash flows...................................................... 89,000

Required:

a.Assuming Staton uses the rational entity impairment model record the appropriate entries.Show calculations.

b.Assuming Staton uses the cost recoverymodel calculate the impairment if any.