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: 1. Determine the impairment loss (if any): $34.944 ( 3 points) Impairment loss = carrying amount - recoverable amount 705,000739,944=34,944 2. Justify your answer ( 2 points) We can see that the asset's recoverable amount is less than its carrying value which means the asset has been impaired. Explanation and * calculations