Question 1:Michael Company acquired a depreciable asset at the beginning of 2020 at a cost of $30 million. On December 31, 2020, Madison gathered the following information related to this asset:

Michael Company at December 31, 2020, the following information related to equipment:

The fair value of the asset ( net selling price )..$26.5 million

Sum of future cash flows use of the asset.$25 million

Present value of future cash flows from the use of the asset. 26 million

Remaining useful life of the asset..............................9 years

Requirements :

Under IFRS

1. The determination and measurement of impairment loss.
2. Following journal entry would be made to reflect the impairment of this equipment in Dec 31, 2020.