On January 2, 2010, WLP Corp purchased equipment that produced a key product for smartphones. That equipment cost $60,000, and its estimated useful life was five years, and after which it expected to be sold for $5,000. WLP Corp uses straight-line depreciation.

At the end of 2012, an accountant in WLP Corp is studying the impairment of the equipment. The demand for the product has declined substantially since the introduction of cheaper imports. She gathers the following Information about the equipment

Carrying amount = $27,000

Undiscounted expected Future CFs = $27,500

Present value of expected future CFs = $24,000

Fair Value if Sold = $25,500

Cost to Sell = $3,000

Under IFRS, is the equipment impaired? If so, determine the amount of the gain or loss on the asset impairment. (clearly indicate gain or loss)

(NOT IMPAIRED)

Under U.S. GAAP, is the equipment impaired? If so, determine the amount of the fain or loss on the asset impairment. (Clearly indicate gain or loss)