Due to increased competition from low-cost foreign manufacturers, Genevive's Toy Company is experiencing significant declines in sales. The company produces its toys from an assembly line, The equipment in this assembly line has not been previously revalued or impaired. The company reports under IFRS. For the year ending December 31, 2010, the controller gathered the following information relating to the assembly line equipment, which is considered to be a cash generating unit: Original cost Accumulated depreciation Fair value Costs to sell Risk adjusted cost of capital $6,379,000 2,400,000 3,247,000 145,000 6% Incremental cash flows for -2011 -2012 -2013 -2014 -2015 and thereafter $1,100,000 1,000,000 800,000 900,000 Required: 1. Determine if an impairment exists (Show your work). IF impairment exists, prepare the related journal entry