A company acquired a new high-tech printing press on January 1, 2011, for $90,000. At that time, the company estimated the press would have a six-year life and salvage value of $6,000. The company uses the straight-line depreciation method for all its equipment. In December 2012, a newer high-tech printing press is introduced in the market. The company controller is concerned that the value of the press may be impaired. The controller has provided you with the following data as of December 2012 and asked you to determine if there is any impairment using US GAAP or IFRS. If there is any impairment, please provide the journal entries. Additionally, as part of the 2013 budget process, the controller has asked you to calculate depreciation expense of the press using both US GAAP and IFRS. ? Scrap value should be reduced to $4,000. ? Expected future undiscounted cash flows from operating the press are $51,000. ? Discounted net present value of expected cash flows from the press is $49,000. ? Fair value of the press at December 31, 2012, is $45,000 and selling costs are minimal. 2. Use the same facts as problem 11 above, except assume that at December 31, 2013, the controller asks what, if any, impairment reserve can be reversed using US GAAP and IFRS, because the controller concludes the press is not impaired at December 31, 2013. The controller has told you to assume the scrap value should remain $4,000. 3. On December 31, 2012, a company exchanges machines A and B for a new machine C. The company also receives $5,000 in cash. The transaction is deemed to lack commercial substance. Based on the following facts, what gain or loss should be recognized using US GAAP and IFRS? Show all required journal entries to reflect this transaction using US GAAP and IFRS. ? Machine A was acquired on January 1, 2009, at a cost of $60,000. The machine has an estimated 10-year useful life and scrap value of $10,000. This machine is depreciated using straight-line depreciation. ? Machine B was acquired on January 1, 2011, at a cost of $70,000. The machine has an estimated five-year useful life and scrap value of $5,000. This machine is being depreciated using the double-declining method. ? Machine C has a fair value of $63,400 at December 31, 2012. 4. Use the same facts as problem 3 above, except assume no cash is received as part of the exchange. Based on these facts, what gain or loss should be recorded using US GAAP and IFRS? Show all required journal entries to reflect this transaction using US GAAP and IFRS