Question - A company purchased a machine on January 1, 2008 for $100,000. The company believes the machine will not have any net salvage value at the end of its 10-year useful life. The machine is depreciated using the straight-line depreciation method. At December 31, 2009, the machine is deemed to have a fair value of $74,000. At December 31, 2011, the fair value of the machine is $70,000.
A. What is the recorded impairment and net value of this machine on December 31, 2009 and 2011 using IFRS? Show all workings related to impairment and reversal of impairment and creation of revaluation surplus using the amortization elimination method (as done in class)
B. What is the recorded net value of this machine on December 31, 2009 and 2011 using US GAAP?