Eckland Manufacturing Co. purchased equipment on January 1, 2009, at a cost of $90,000.

Depreciation for 2009 and 2010 was based on an estimated ten-year life, $2,000 estimated residual value and Double decline balance depreciation method. On January 1, 2011, Eckland revised its estimate and now believes the equipment will have a remaining service life of eight years, $2,500 estimated residual value and sum-of-years digits (SYD) depreciation method .

On Dec 31 2011, Eckland reasonably estimated future cash flow that annual net cash inflow of previous three years will have $ 7,000 and remaining years will have $5,000. Also Eckland estimated the residual value $1,000.On the other hand, Eckland also estimated selling price $50,000 of this equipment and disposal cost $2,000

Additional information:

Discount rate 6%, PV(3,6%)=0.84, PV(6,6%)=0.70, PV(7,6%)=0.66 PVA(3,6%)=2.67, PVA(4,6%)=3.47

Required:

(1)Determine the amount of impairment loss, if any. If a loss is indicated, prepare Journal entry to record the loss. (USGAAP)

(2)Calculate the impairment loss, if any. If a loss is indicated AND prepare Journal entry to record the loss (under IFRS)