Question 2 (7 marks) On June 30, 2020, Shephard Inc. (Shephard), a publicly accountable entity, had a 3D printing machine and a department that was a cash-generating unit (CGU), and both had indications of impairment. Shephard was required to perform an impairment test for the machine and the CGU, and it provided the following information as at June 30, 2020, its year end: Machine Machine NBV Carrying value $650,000 Fair value Value in use $600,000 $550,000 NBV CGU Carrying value Fair value Value in use Equipment $ 450,000 $ 50,000 Building 1,400,000 1,300,000 Land Goodwill Total 625,000 500,000 700,000 N/A $2.975,000 $2,050,000 $2,000,000 Costs of disposal are 8% of the fair values of the machine and the CGU. Assume that depreciation for the year has already been recorded. 480,00 Required: a) For the machine, determine whether an impairment loss should be recorded at June 30, 2020, and prepare the journal entry that Shephard should record at June 30, 2020. Show your calculations. (2 marks) b) For the CGU, determine whether an impairment loss should be recorded at June 30, 2020. (1.5 marks) c) For the CGU, allocate the impairment loss (if any) to the CGU's assets at June 30, 2020. Indicate what amount should be allocated to each asset and explain why. (3.5 marks)