Baker Inc. currently follows U.S. GAAP and is evaluating whether to switch to IFRS. Bakers Controller is concerned that several intangible assets on the companys books may be impaired.

The following information relates to a specific non-goodwill intangible asset with a finite life that the company is holding for disposal in Year 1:

Carrying value: $4,350

Present value of future cash flows (fair value): $3,520

Sum of undiscounted expected future cash flows: $3,975

Estimated costs to sell: $345

Baker is also concerned about goodwill on its books, which it is evaluating at both a reporting unit level (GAAP) and a cash-generating unit level (IFRS). The following information relates to goodwill in Year 1:

	Reporting Unit level:
	-	Carrying value: $915,000
	-	Fair value: $820,000
	-	Fair value assigned to assets and liabilities: $760,000
	-	Goodwill: $75,000
	Cash-generating Unit level:
	-	Carrying value: $350,000
	-	Fair value: $325,000
	-	Costs to sell: $55,000
	-	Present value of future cash flows (equal to fair value): $325,000 1.Calculate the impairment loss on the intangible asset under GAAP 2. If the fair value exceeds the carrying value in Year 2, will a reversal be allowed under GAAP? 3. If IFRS were used, calculate the impairment loss on the intangible asset 4. Calculate the impairment loss on goodwill under GAAP 5. Calculate the impairment loss on goodwill under IFRS