Robey Optical Corporation reported the following information regarding long-term operating assets for its Lens Manufacturing Operations:

Recent advances in technology have rendered the company's lens manufacturing operations nearly obsolete. Management projects the following future cash flows for its lens manufacturing operations.

Requirement a. Determine the asset group for purposes of impairment testing and justify your decision.

Assets	Asset Group	Justification
Factory Building
Land
Lens Manufacturing Equipment
Lens Polishing Equipment
General Factory Equipment
Delivery Trucks

Requirement b. Compute the impairment loss for the asset group identified in part (a) for the current year, if any. (If there is no impairment loss, leave the box empty; do not enter a zero.)

The impairment loss for the assets grouped is $

.

Requirement c. Prepare the journal entry to record the impairment loss, if needed. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the table blank.)

Account	Date of Impairment

Data Table Description Estimated Fair Value Factory building (used in several segments) $ Carrying Value 10,020,000 (4,595,000) Less: Accumulated depreciation $ 5,425,000 $ 8,925,000 Net book value $ Land 14,032,000 7,008,000 $ Lens manufacturing equipment $ 2,125,000 (622,000) Less: Accumulated depreciation $ 1,503,000 $ 1,130,000 Net book value Lens polishing equipment $ 3,025,000 (1,226,000) Less: Accumulated depreciation $ 1,799,000 $ 1,629,000 Net book value General factory equipment (used in several segments) $ 6,532,000 (4,280,000) Less: Accumulated depreciation Print Done X Data Table Lens manufacturing equipment $ 2,125,000 (622,000) Less: Accumulated depreciation $ 1,503,000 $ 1,130,000 Net book value Lens polishing equipment $ 3,025,000 (1,226,000) Less: Accumulated depreciation $ 1,799,000 $ 1,629,000 Net book value General factory equipment (used in several segments) $ 6,532,000 (4,280,000) Less: Accumulated depreciation $ 2,252,000 $ 2,448,000 Net book value Delivery trucks (used in several segments) $ 1,980,000 (330,000) Less: Accumulated depreciation $ 1,650,000 $ 1,135,000 Net book value $ Total net fixed assets 19,637,000 Print Done Data Table X 1 Future Period Cash Flow Projection Year 1 $ 1,216,000 Year 2 769,000 Year 3 448,000 Year 4 e 358,000 310,000 Year 5 $ 3,101,000 Total Print Done