Agora Corporation, a private Canadian entity using ASPE, has factory equipment that has a cost of $$2,500,000$ and accumulated depreciation of $$600,000.$ A change of operations has resulted in this equipment not being fully utilized. A review indicates that future net cash inflows from its use will be approximately $$1,500,000$ undiscounted and $$1,400,000$ discounted. The current market value of similar equipment is about $$1,200,000.$ Required a$)$ Determine if there is an asset impairment. Explain your reasoning. b$)$ Assuming that there is an impairment, determine the amount of impairment and provide the journal entry to record the impairment. c$)$ In the subsequent year, the market value increases to $$1,600,000.$ What action, if any, should Agora take with respect to the accounting for this equipment? Explain your answer.

Answer correctly.