QUESTION 4: IMPAIRMENT (5 points) The company ARL Inc. has been evaluating the impairment indicators to comply with IFRS. Information regarding operating assets is as follows: Equipment: The asset's net carrying value on the date of impairment is $705,000. To measure the impairment loss, the company projected the asset's future cash flows as follows: Cash Flow Present Value Function at 8% Using Future Period Projection Spreadsheet Formula Year 1 Year 2 Year 3 $400,000 250,000 140,000 PV(0.08,1,0,400000) $370,370 ||=PV(0.08,2,0,250000) = 214,335 Year 4 Total 60,000 $850,000 -PV(0.08,3,0,140000) = 111,137 -PV(0.08,4,0,60000) 44,102 $739,944 1. Determine the impairment loss (if any): $ points) 2. Justify your answer (2 points) Explanation and *calculations. (3