You are a senior auditor and have been assigned to test the impairment calculations of Machinery for Beetow AG, an industrial manufacturer based in Germany. Beetow maintains a listing on the NY Stock Exchange in the U.S. The following information was taken from the fixed asset records of Beetow as of December 31, 2020:

Required: Answer each of the following. Show your work. (Use extra space/sheet as needed) 1. Using IAS 36, what is the amount, if any, of the Impairment Loss for 2020? _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ 2. Under U.S. GAAP, what is the amount, if any, of the Impairment Loss for 2020? (Assume that the present value of expected future cash flows also closely approximates fair value). ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ Page 19 of 22 ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 3. In 2021, assume that the economy strengthens and the value of the asset rises significantly. Briefly discuss the impairment accounting implications regarding this asset in 2021 under IFRS and US GAAP. _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

\begin{tabular}{ll} Carrying value & 100,000 \\ Selling price & 85,000 \\ Cost of disposal & 3,000 \\ Expected future cash flows & 75,000 \\ Present value of expected future cash flows & 63,000 \end{tabular}