Answer:
The double for the impairment is given below
Dr Impairment loss expense(income statement) $3,328,000
Cr Accumulated depreciation $3,328,000
Explanation:
An asset is impaired if its carrying value(net book value) is higher than its recoverable amount.
Recoverable amount is the higher of fair value less costs to sell and value in use.
First of all, identifying the figures above individually would be a good starting point to calculating the impairment on the equipment.
Carrying value is $8320000
(cost less accumulated depreciation to date)
Recoverable amount under IAS 36 is the higher of fair value less costs of disposal and value in use
However,the calculation of impairment under U.S GAAP ,requires that the asset carrying amount is compared to fair value of the asset, as a result impairment is $3,328,000
($8,320,000-$4,992,000)
Under IFRS the credit is posted directly to equipment account in the balance sheet
