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Tank Top Menswear, Ltd., an IFRS reporter, reported net plant and equipment of...

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Accounting

Tank Top Menswear, Ltd., an IFRS reporter, reported net plant and equipment of $1,600,000. These assets cost $2,500,000 with accumulated depreciation taken to date of $900,000. Based on recently assessed negative evidence, Tank Top's management concluded that its plant assets might be impaired. Tank Top estimates that the value in use is $1,087,000, based on discounted expected futare cash flows from the use of the assets. The fair value of the assets less costs to sell is $1,000,000. Are the company's assets impaired? If there is an impaiment loss, prepare the journal entry necessary to record the impairment.
Conduct the impairment tests indicated for assets other than goodwill at the end of the year, one year after the acquisition. Start with part 1.
\table[[Part 1:,Plant and],[Fair value less costs to sell,$1,600,000
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