The Salamander Company has evaluated its receivables, and has identified the following possible impairments:

Note #1 has recently deteriorated in credit quality. For Note #1, Salamander estimates the present value of credit losses occurring in the next twelve months is $50,000, and the present value of credit losses occurring after twelve months is $20,000.

Note #2 has not deteriorated in credit quality. For Note #2, Salamander estimates the present value of credit losses occurring in the next twelve months is $5,000, and the present value of credit losses occurring after twelve months is $10,000.

If Salamander is reporting under IFRS and therefore uses the ECL model, it would recognize an impairment loss of:

• $50,000 
• $55,000 
• $75,000 
• $85,000