Canadian Accounting:

Conditions of impairment have been identified. The company has established that there are two CGUs: the merchandising division and the construction division. The assets of the merchandising division include Building 1 and Equipment 1 and 3. The assets of the construction division include Building 2 and the remaining equipment. Information on each of these assets is provided below:

Asset	Residual V alue	Carrying Value at Dec 31, 20x5
Building 1	$500,000	$4,700,000
Building 2	200,000	3,236,752
Equipment 1	100,000	433,500
Equipment 3	40,000	223,125
Equipment 4	100,000	595,000
Equipment 5	30,000	306,000
Equipment 6	-	585,706
Equipment 7	-	555,000

The following additional data has been provided.

	Merchandising Division	Construction Division
Fair value of assets	5,200,000	$5,000,000
Estimated costs to sell	500,000	450,000

Future cash flow budget
20x6	$500,000	$250,000
20x7	500,000	350,000
20x8	500,000	450,000
20x9	500,000	500,000
20x10 20x24	400,000	600,000

The relevant discount rate is 6%.

Required For each of the two CGUs, prepare the impairment journal entry (if any) at December 31, 20x5. Assume the company follows IFRS.