Part A Brown Inc. has indicated that the printing press and the delivery truck are independent cash generating units. The truck has been performing below expectations. Furthermore, due to the change in consumer reading habits, there is less demand for printing services. Printing Press Delivery Truck Original cost of machinery $12,000,000 $180,000 Accumulated depreciation 4,000,000 10,000 Fair value 9,000,000 170,000 Cost to remove and transport 200,000 Cost of cleaning and refurbishing machinery 120,000 5,000 Finance cost 30,000 3,000 Value in use 7,500,000 150,000 REQUIRED Based on the data provided above, what impairment, if any, exists on the printing press and the delivery truck. Show all the steps for testing impairment. Show all calculations. (7 marks) 13 | Page ACCT 3310 Intermediate Accounting Final Exam Summer 2018 Question 15 (cont'd) Part B (6 marks) Wallace Inc. wishes to use the revaluation model for this property: Before Revaluation Building Gross Value 150,000 Building Accumulated Depreciation 70,000 Net carrying value 80,000 The fair value for the property is $60,000. i. Assume this is the first year of using the revaluation model, what amount would be booked to Profit/Loss (or OCI) if Wallace chooses to use the proportional method to record the revaluation? Show all calculations