Cactus Corporation is a manufacturer of automobile parts. It has one cash-generating unit that needs to be tested for impairment. In addition, there is a cash-generating unit that requires testing for impairment with the following carrying value information available:

Land $320,000

Building 870,000

Equipment 410,000

Goodwill 300,000

The only separately determinable fair value available from the cash-generating unit is the land which has a fair value of $380,000. The fair value of the entire CGU is $1,550,000. The cash flows generated by the CGU for the next 5 years would be $317,000 per year. The cost to sell would be 5% of fair value and the appropriate discount rate is 6%.

Required:

a) Assuming Cactus is a corporation that reports under IFRS, calculate the impairment loss, if any, at December 31, 2018. For the CGU, allocate the impairment loss, if any to the CGUs assets. (6 marks)