On January 2, 2018, ABC Co. purchased equipment with a cost of $10,440,000, a useful life of 10 years and no salvage(residual) value. The Company uses straight-line depreciation. At December 31, 2018 and December 31, 2019, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end:

12/31/201812/31/2019

Fair value less cost to sell $9,315,000$8,350,000

Value-in-use $9,350,000$8,315,000

Instruction: Assume that there is no change in the asset's useful life or salvage value. Apply IAS 36 impairment testing and calculate and present results for 2018 and 2019. Especially provide information in relation to income statement impact of your assessments