M 1 Impalment (11) On January 1, 2018, Bridgeport Ltd. purchased equipment for $872,000. The equipment was assumed to have an 8-year useful life and no residual value, and was to be depreciated using the straight line method. On January 1, 2020, Bridgeport's management became concerned that the equipment may have 2 become obsolete. Management calculated that the undiscounted future net cash flows from the equipment was $626,750, the discounted future net cash flows was $555,900, and the current fair value of the equipment was $545,000 and the cost to sell was zero. 4 5 Instructions a) Record the journal entry to record the impairment loss, if any using the cost recovery impairment model. Assume that Bridgeport is applying ASPE to determine whether there is impairment or not. You must show all the steps in the impairment test to achieve full marks. (4 marks) b) Record the journal entry to record the impairment loss, if any using the rational entity impairment model. Assume that Bridgeport is applying IFRS to determine whether there is impairment or not. You must show all the steps in the il gairment test to achieve full marks. (4 marks) 0 7 Please use the space below to explain each step and show support for your calculations. 3 9 10