A company manufactures spaceships. Due to a downturn in the economy, sales have dropped while competition has increased. Due to these circumstances, the company evaluated for impairment the operating equipment used to make spaceships. The equipment has a cost of $14,000,000, accumulated depreciation of $9,400,000, and a value in use of \$4,17 . The company recorded depreciation using the straight line method and estimated a 20-year useful life with no residual value. In addition, the company has recently had the equipment assessed and believes it could sell the equipment for \$4,2 today. Legal and other costs necessary to complete a sale of this type would amount to $ 50,000. The undiscounted cash flows associated with the equipment are $4,500,000. The year end is June 30.

Required: 1) Record the journal entry for impairment, if any, under IFRS. Clearly show your calculations. (5 marks)

2) Record the amount of impairment, if any, under ASPE. Clearly show your calculations. (2 marks)