A machine acquired for £480,000 on 1 January 2005 and depreciated using the straight-line method assuming 20 years useful life and 10% scrap value was damaged in an accident on 1 January 2011. Although it has been restored to working condition at a cost of £20,000, it is expected to be in operational use for only four more years and the present value as at 1 January 2011 of the cash flow it is expected to generate is £84,000. The machine is expected to have a scrap value of £10,000. What is the impairment loss to be written off on 1 January 2011 and depreciation in the year 2011?

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Impairment loss a £266,400 b £256,499 c £286,400 C d £266,400 Depreciation £21,000 £23,500 £21,000 £23,500 SVA