During 20X1, X Company manufactured equipment for its own use at a total cost of $2,400,000.The project required the entire year to complete and all costs were incurred uniformly throughout the year.At the beginning of the period, X was able to borrow $1,500,000 at 6% specifically for the purchase of materials and the manufacture of the equipment.The entire debt, with interest was repaid on December 31, 20X1, replaced with a long-term loan.Throughout 20X1, X Company had additional debt of $1,000,000 with a weighted average interest rate of 7%.

If X Company capitalizes to the equipment the maximum amount of interest allowable under GAAP, how much will X report as interest expense in 20X1?

1.During the year, there had been significant decreases in the fair market value of Roger Co's manufacturing equipment. The following information regarding the costs associated with the equipment was gathered:

Original cost of the equipment

$700,000

Accumulated depreciation

$400,000

Expected net future cash inflows

(present value) related to the continued

use and eventual disposal of the equipment

$275,000

Fair value of the equipment

$225,000

Under IFRS, how much impairment loss should be reported on Roger Co's income statement for the year?