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 $2020?$

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$2.$ 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$).$

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$3.$ 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.

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