In Year 1, Manny Company purchased a piece of equipment with a cost of 80000 and a useful life of 5 years.

At the beginning of Year 3, the company has determined the following:

Expected future cash flows	$46000
PV of expected future cash flows	$41000
Net selling price	$42000

1. Assuming the company used straight-line depreciation and the residual value is 0, what is the depreciation in Years 1 and 2 for US GAAP and IFRS?
2. What is the net carrying amount at the beginning of Year 3 for US GAAP and IFRS?
3. What is the impairment, if any, for US GAAP and IFRS as of the beginning of Year 3?