For 2020, Megan Inc. reported $720 asset impairment pertaining to its recent restructuring efforts. After a review of Megan's financial statements, you decide to adjust the company's 1/S and B/S for its restructuring efforts. To do this, you allocate the asset impairment over the prior 4 years (including 2020). Assume a tax rate of 25%. Required: a. (8 marks) For I/S effects related to asset impairment, identify with numbers the adjustments for each of the 4 years 2017 2020 for: (i) Asset Impairment (ii) Depreciation expense (iii) Tax expense (iv) NI b. (6 marks) For B/S effects related to asset impairment, identify with numbers the adjustments for each of the 4 years 2017 2020 for: (i) Accumulated Depreciation (ii) Deferred tax asset (iii) R/E For (a) use the table below: 2017 2018 2019 2020 Income statement adjustment Asset impairment (reverse) Tax expense (reverse) NI (reverse) Depreciation expense Tax expense NI (adjustment) Total Nl (reverse + adjustment) R/E For (b) use the table below: 2017 2018 2019 2020 Balance sheet adjustment Accumulated depreciation Deferred tax asset R/E For 2020, Megan Inc. reported $720 asset impairment pertaining to its recent restructuring efforts. After a review of Megan's financial statements, you decide to adjust the company's 1/S and B/S for its restructuring efforts. To do this, you allocate the asset impairment over the prior 4 years (including 2020). Assume a tax rate of 25%. Required: a. (8 marks) For I/S effects related to asset impairment, identify with numbers the adjustments for each of the 4 years 2017 2020 for: (i) Asset Impairment (ii) Depreciation expense (iii) Tax expense (iv) NI b. (6 marks) For B/S effects related to asset impairment, identify with numbers the adjustments for each of the 4 years 2017 2020 for: (i) Accumulated Depreciation (ii) Deferred tax asset (iii) R/E For (a) use the table below: 2017 2018 2019 2020 Income statement adjustment Asset impairment (reverse) Tax expense (reverse) NI (reverse) Depreciation expense Tax expense NI (adjustment) Total Nl (reverse + adjustment) R/E For (b) use the table below: 2017 2018 2019 2020 Balance sheet adjustment Accumulated depreciation Deferred tax asset R/E