Question 6: Impairment Losses & Recovery (12 marks) Metro Publishing uses a specialized printer in their media business. The printe was purchased in January 2016 for $9 million and had an estimated life of 9 years with no residual value. By January 1, 2018, new technology was introduced, making the printer obsolete in the future and decreasing its useful life to only 5 years. Metro's controller estimates the expected undiscounted future net cash flows on the equipment to be $5.6 million and the expected discounted future net cash flows on the equipment to be $5.15 million. Fair value of printer on December 31, 2017 was estimated at $4.95 million. Metro uses straight-line depreciation and is a private company that follows Hint: You will need to calculate the carrying amount of the asset net of accumulated depreciation for the periods in question. Impairment loss is calculated differently under ASPE and IFRS. ASPE evaluates using Cost Recovery model and calculates impairment losses based on fair value, where IFRS evaluates using discounted future cash flows. ASPE. Required: (round all answers to 0 decimal place) a) Calculate the impairment loss and record the journal entry and indicate which impairment model you followed under ASPE, as at December 31, 2017 b) On December 31, 2018 the fair value is now estimated at $5.25 million. Prepare any journal entries for the printer at December 31, 2018 c) Now assume they follow IFRS, calculate the impairment loss and record the journal entry, indicating which impairment model you following under IFRS, as at December 31, 2017 d) Assuming IFRS is followed, calculate the December 31, 2018 entry for depreciation expense