Original cost         &n bsp; $800,000

Dep (2007 & 2008)     ($200,000)

Carrying value 2009     600,000

Impaired by         &nbs p;      (400,000)

New carrying value      200,000

$400,000 is added to accumulated dpreciation, so at the beg of 2009 accumulated dep will have bal of $600,000 and $200,000 will be recovered in next 5 yrs. Remember its permenantly impaired not totally impaired.

I hope that helps.

one more - i guess the calculation should be

Original cost         &n bsp;         &n bsp;  $800,000

Dep (2006 , 2007 & 2008)     ($300,000)

Carrying value 2009     500,000

Impaired by         & ;nbs p;      (300,000)

New carrying value      200,000

Oh, i didn't calculate properly. You are right, i did mess up the calculation in hurry, lol........i was doing something else and quickly replied, , but so long you know the logic, you should be fine