Food Incorporated, a public company following IFRS, has a process packages tuna in oil. The machine originally cost $100,000 and is being amortized on a straight- line basis over 20 years. The carrying amount of the machine on December 31, 2020, is $20,000. Recent health studies have shown that due to contamination, eating tuna is bad for your health. Undiscounted cash flows for the machine are $22,000. Discounted cash flows for the machine are $17,000. The fair value is estimated to be $17,500 and disposal costs of the machine are estimated to be $1.000. Required: 1. Is the machine impaired? What is the impairment loss if any? (2 marks) 2. Provide the journal entry if there is impairment. (2 marks) Debit Credit 2. Assume instead that Food Incorporated is a private company, following ASPE, is the machine impaired? Explain your answer and if there is impairment, what is the amount of the impairment loss? (2 marks) Part B. (4 marks) Alpha Inc. owns equipment that it purchased on January 1, 2019, for $100,000. The machine has a ten-year useful life and no residual value. The straight-line depreciation is being used. The company uses the revaluation model to account for its property, plant, and equipment every two years. On the revaluation date, at December 31, 2020, the machine has a fair value of $85,000 Required Using the revaluation model, prepare the entr(ies) to adjust the asset's carrying amount to fair value. You can use either the asset adjustment method or the proportionate method. Debit Credit