Consider the following three independent scenarios: SSNS 1 2 3 Originalicostsoftassctuaeee eee $1,400 $1,400 $1,400 Accumulated depreciation............ 400 400 400 _ Sum of future cash flows ............ 1,500 1,500 900 — Fair value of the asset............... 1,100 800 800 SSS 1. For each of the three scenarios, answer the following questions:

a. Is the asset impaired?

b. At what amount (net of accumulated depreciation) should the asset be reported? 2. Make the journal entry required in Scenario 3.