Gardner Inc. manufactures products in two plants. One of the plants is an area where there has been a downturn in the market, and Indications are that there has been potential Impairment. Gardner has determined that the asset group Includes land, building, equipment, and a mortgage. Management anticipates using the plant for the next 10 years. The net book values of the assets in the asset group are as follows: Land $60,000 Building 550,000 Equipment Mortgage 210,000 (225,000) Annual cash flows from continuing to operate the plant over the next 5 years are $50,000 a year. The plant would be demolished at the end of 5 years. The estimated net residual value of the land and equipment is $180,000. The appropriate discount rate for Gardner Is 5%. Gardner has considered selling the assets and using the cash to help open a new facility. The market value of the assets was estimated by appraisers to be $500,000 less a commission of 10%. The buyer would assume the mortgage. Required: 1-a. Is the asset group Impaired? Yes No 1-b. If so, what is the amount of the Impairment loss? Impairment loss 2. How would your response change if the expected annual cash flows were $100,000 each year for 5 years, with a $200,000 expected net residual value? 2-a. Is the machine Impaired? Yes No 2-b. If so, what is the amount of the Impairment loss? Impairment loss