Impairment of equipment

Depreciation rate= 1/10*2=0.2

End of 2009 Depreciation expense=500,000*0.2=100,000
Book value=500,000-100,000=400,000
End of 2010 Depreciation expense=400,000*0.2=80,000
Book value=400,000-80,000=320,000
End of 2011 Depreciation expense=320,000*0.2=64,000
Book value=320,000-64,000=256,000
End of 2012 Depreciation expense=256,000*0.2=51,200
Book value=256,000-51,200=204,800
U.S. GAAP
Step 1 Undiscounted net cash flows=40,000*3+20,000*4=200,000< BV:256,000
So, an impairment happened
Step 2 FV=230,000 if the estimated selling price is in active market
Impairment loss=230,000-256,000=(26,000)
BV=230,000*(1-0.2)=184,000
use Present Value as ordinary annuity
PV=40,000*2.67301+20,000*3.46511*1/1.063+5,000*1/1.067=106,920+58,187+3325=168,432
So, Impairment loss=168,432-256,000=87568
BV=168,432
So, BV for 2012=168,432*0.8=134,745.6
IFRS
Recoverable amount: NRV=FV-cost of disposal=230,000-2,000=228,000
If cash flows happened at the end of the year:
PV=40,000*2.67301+20,000*3.46511*1/1.063+5,000*1/1.067=106,920+58,187+3325=168,432
If cash flows happened at the beginning of the year:
PV=40,000*2.83339+20,000*3.67301*1/1.063+5,000*1/1.067=178,339
So, 168,432<PV<178,339
Impairment loss=228,000-256,000=28,000
2012: BV=228.000*(1-0.2)=182,400